<i>NYT</i>: Health Management's scheme to boost payments

|About: Health Management Associa... (HMA)|By:, SA News Editor

The NYT profiles Health Management Associates (HMA), which is facing multiple lawsuits in several states - including from the Justice Department - over claims that it would admit patients into hospitals even if they didn't need treatment so that it could receive more money from Medicare and Medicaid.

The practice was allegedly driven by former CEO Gary Newsome.

The problem from the authorities point of view is that settlements are relatively small. Penalties would only act as a deterrent, says analyst Sheryl Skolnick, if they were at least $500M.