The Hospital Cost Reports

A large hospital chain billed the government's health programmes for treating patients. Each year its hospitals sent the government a cost report used to settle up payments. Prosecutors say the chain padded those reports, listing costs that were not allowed and shifting employee salaries into them to boost payments. They also say it paid doctors for sending patients its way, which the law forbids. The chain's management arm was charged with making false statements and conspiring to pay kickbacks. The statements must be knowingly false.