Community Health unit to pay $260 million to resolve U.S. fraud probe

(Reuters) – A hospital operator now owned by Community Health Systems Inc will pay more than $260 million to resolve claims it defrauded government health care programs and paid doctors kickbacks for patient referrals, the U.S. Justice Department said on Tuesday.

Health Management Associates, which Community Health acquired in 2014, agreed to pay the sum to resolve criminal and civil claims as part of a deal in which a subsidiary also agreed to plead guilty to conspiring to commit health care fraud.

Reporting by Nate Raymond in Boston; Editing by Cynthia Osterman

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