Beth Israel Medical Center has admitted that it fraudulently increased fees for services to Medicare patients in order to receive millions of additional dollars from the federal government.

The New York hospital agreed to pay more than $13 million in damages in a health care False Claims Act lawsuit that was filed and settled this week. The settlement was announced Thursday by the U.S. attorney for the Southern District of New York.

The complaint says the fraudulent practice, known as "turbocharging," went on at Beth Israel from 1998 through 2003. The complaint says the hospital deceived the Medicare program into believing that the costs associated with inpatient medical care were higher than they actually were.

Beth Israel is a component of Continuum Health Partners, Inc.

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