Catholic Health to Pay $4.9 Million in St. Joseph Overbilling Case

The previous owner of University of Maryland St. Joseph Medical Center has agreed to pay the federal government $4.9 million for overbilling the Medicaid and Medicare system by keeping patients in the hospital longer than needed.

Catholic Health Initiatives, which recently sold the hospital to University of Maryland Medical System, did not admit to wrongdoing under the settlement announced Thursday. The medical company said in a statement that it wanted to avoid lengthy and costly court proceedings.

The settlement comes as Catholic Health Initiatives continues to deal with deep troubles that plagued St. Joseph when it was owner. The Denver-based company, which owns hospitals around the country, faces hundreds of lawsuits from patients who accused Dr. Mark Midei, once a star cardiologist at St. Joseph, of placing stents in the arteries of patients who may not have needed them.

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