New York Foundling Hospital, a Manhattan-based provider of child foster care services, has reached a $250,000 settlement with New York Attorney General Eric T. Schneiderman's office to resolve allegations the hospital billed Medicaid for the care of children while they were absent from the program.

Medicaid regulations require child foster care providers to bill for the care of children only while they are physically present. An investigation by the Attorney General’s Medicaid Fraud Control Unit revealed that New York Foundling overbilled Medicaid in various ways between 2004 and 2010.

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