Home News CBS News Investigation Alleges Rural Hospitals Are Being Used to Defraud Healthcare Payers

CBS News Investigation Alleges Rural Hospitals Are Being Used to Defraud Healthcare Payers

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Chestatee Regional, a struggling, 49-bed hospital in northern Georgia, was purchased in 2016 by a Florida lawyer who also owned a laboratory service. The hospital was then used to improperly bill health insurers for millions of dollars, an investigation by CBS News’ Jim Axelrod alleged.

The lab owner purchased Chestatee and several other regional hospitals to use as billing shell companies because health insurers tend to pay rural hospitals higher reimbursement rates, Axelrod’s report insinuated.

Get the whole story here, from CBS News.