Sierra Vista Settles Case with US

Psychiatric Solutions Inc. and Universal Health Services Inc. have settled their case with the U.S. government Tuesday, agreeing to pay $3.45 million after facing charges a subsidiary defrauded the Medicare program.

The federal government charged subsidiary Sierra Vista after an investigation found they were billing patients for treatments and tests they either rarely attended or didn’t get doctor’s orders. These fraudulent bills allegedly occurred from January 2003 through September 2009.

Sacramento is the location of a psychiatric facility owned by Sierra Vista – the Sierra Vista Hospital on Bruceville Road – which offers psychiatric services to Medicare patients.

Among other terms of the settlement is that Sierra Vista enters a Corporate Integrity Agreement, which furthers reporting to and oversight by the Department of Health and Human Services.