United Hospital settles Medicare overcharge claim

United Hospital of St. Paul has agreed to pay the U.S. Department of Justice nearly $430,000 to settle claims it overcharged the Medicare program.

United was one of nine hospitals in seven states accused of submitting false claims in connection with a procedure used to treat some osteoporosis-related spinal fractures.

The Justice Department says the procedure can often be performed in less-expensive out-patient settings, but that the hospitals performed it in-patient to increase their Medicare billings.

United says it "cooperated fully with the government's investigation," but disputes that it overcharged Medicare.

"This case only involves an issue of the appropriate level of care," the hospital said in a statement. "In this case, the government alleged that patients should have received a less intensive level of care, specifically: outpatient, not inpatient."