St. Joseph Medical Center Settles Stent Cases

Margaret Dick Tocknell, for HealthLeaders Media , May 7, 2013

Midei resigned from St. Joseph in November 2009. The Maryland Board of Physicians revoked his state medical license in 2011. His 2012 effort to overturn that revocation was denied.

Midei denies any wrongdoing and has long contended that he is a scapegoat in the kickback scandal. He filed a defamation lawsuit against St. Joseph and CHI in 2011 seeking $60 million in compensation. The Baltimore County Circuit Court dismissed the case in 2012.

HealthLeaders Media was unable Monday to reach Stephen L. Snyder, who is Midei's attorney, to confirm that the defamation suit opinion is under appeal.

The University of Maryland Medical System, a 12-hospital system, acquired St. Joseph Medical Center in December 2012. UMMS formed the University of Maryland St. Joseph Medical Center LLC to take over all hospital operations. In a press release announcing the acquisition, UMMS officials noted that under the asset purchase agreement, UMMS would not assume any of St. Joseph liabilities "arising from events occurring prior to December 1, 2012. These liabilities will remain with SJMC and CHI."

After UMMS acquired St. Joseph, the system applied for a new Medicare provider agreement for the facility, but the hospital failed an inspection by the Centers for Medicare & Medicaid Services.

In April, UMMS and CMS reached an agreement to restore some of the estimated $25 million UMMS lost on unbilled Medicare services between mid-December 2012 and February 2013 while the new federal agreement was in limbo, according to a report in the Baltimore Business Journal.

In February, the Department of Justice announced that St. Joseph's Medical Center agreed to pay $4.9 million "in connection with its submission of false claims to Medicare, Medicaid and other federal healthcare programs."

Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.

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