A federal judge has dismissed an $8.1 million suit against a Baltimore hospital accused of improperly billing Medicare, Medicaid and a military health benefit program, according to the Associated Press.
The lawsuit accused Kernan Hospital of manipulating a computer billing system so that it appeared patients had a severe form of malnutrition.
The government failed to show that fraudulent diagnoses were submitted for payment, U.S. District Judge Richard D. Bennett said in his ruling. Prosecutors are still considering whether to appeal or file an amended complaint, Vickie LeDuc, a spokeswoman for the U.S. Attorney's Office, told AP.
The University of Maryland Medical System, which owns the hospital, had previously said it did not agree with the government's findings and had been in discussions with prosecutors regarding how it coded patients with malnutrition.