Last week, the United States and New York announced a settlement with Mount Sinai Health System for $3 million dollars to resolve allegations that Mount Sinai violated the False Claims Act by retaining overpayments for longer than 60 days after identifying them. The settlement is the first of its kind regarding the Affordable Care Act’s creation of FCA liability for providers that have identified overpayments but have not refunded such payments within 60 days.

The settlement resolves the case, Kane v. Healthfirst, Inc., et al., No. 1:11-cv-02325, filed in the Southern District of New York.  The state of New York will receive approximately $1.8 million, and the federal government will receive approximately $1.2 million as a result of the settlement.  The Relator, Robert Kane, will receive approximately $350,000 for his role in the case.  For more details regarding the Kane case, please click here.