A.G. Schneiderman Announces $250k Settlement With NY Foundling Hospital For Overbilling Medicaid

Manhattan-Based Provider Charged Taxpayers For Children Who Were Absent From The Program; Settlement Brings Total Medicaid Costs Recouped In Child Foster Care Investigations By A.G.’s Office To $3.8 Million

Schneiderman: New York's Neediest Children And Our Taxpayers Deserve To Have Critical Program Funds Protected

NEW YORK - Attorney General Eric T. Schneiderman today announced a $250,000 settlement with New York Foundling Hospital, a Manhattan-based provider of child foster care services. The settlement resolves allegations that New York Foundling was billing Medicaid for the care of children while they were absent from the program. As part of an ongoing review of child foster care agency books, the Attorney General’s office has recouped $3.8 million in Medicaid funds from more than 65 child foster care facilities.

“Taxpayer money spent on New York's most vulnerable kids must be safeguarded – not wasted,” Attorney General Schneiderman said. “My office will remain vigilant to ensure that providers bill Medicaid for services that are actually rendered and that funds meant to help our neediest kids are spent to care for them.” 

Medicaid regulations require that child foster care providers bill for the care of children only while they are physically present at the program. An investigation by the Attorney General’s Medicaid Fraud Control Unit revealed that New York Foundling, located at 590 Avenue of the Americas, overbilled Medicaid in a variety of ways between 2004 and 2010. The agency, which offers care for children and families in New York and Puerto Rico, billed for kids prior to their admission to New York Foundling, including while the children were enrolled in another program, after they were discharged from the program, while they were in legal detention and when they were absent from the program longer than the allowable 21 days within a one-year time frame.

New York Foundling has agreed to pay back $170,775, plus an additional $85,387 in penalties under the New York State False Claims Act, for a total of $256,162.

The top ten settlements resulting from Attorney General Schneiderman’s review of child foster care agency books are: 

Jewish Child Care Association, NY, NY: $403K
NY Foundling Hospital, NY, NY: $366K
Catholic Guardian Society and Home Bureau, NY, NY: $348K
Family Support Services, Bronx, NY: $146K
Abbott House Inc., Irvington, NY: $143K
Children’s Aid Society, NY, NY: $118K
Children’s Village, Dobbs Ferry, NY: $116K
Hillside Children's Center Laburnum, Rochester, NY: $109K
Salvation Army Social Services for Children, NY, NY: $83K
Cardinal McCloskey School & Home for Children, White Plains, NY: $73K

The Attorney General would like to thank New York Foundling Hospital for its cooperation during the investigation.

This matter was handled by Jay Speers, counsel to the Medicaid Fraud Control Unit; Associate Special Auditor Investigator Olga Yanulevich; Principal Special Auditor Investigator Granville A. Senior, and Michael LaCasse, Chief Auditor for Civil Enforcement. The matter was overseen by Acting MFCU Director Amy Held and Kelly Donovan, Deputy Attorney General for Criminal Justice. In addition, Gina Poletto, Special Auditor Investigator, assisted on the other child foster care recoveries.

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