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.

The agency, which offers care for children and families in New York and Puerto Rico, billed for kids before their admission to New York Foundling. They at times  billed while the children were enrolled in another program, after they were discharged from the program, while they were in legal detention and when they were absent longer than the allowable 21 days within one year.

New York Foundling has agreed to pay back $170,775, plus an additional $85,387 in penalties under the New York State False Claims Act, for a total of $256,162.

As part of a review of child foster care agency books, the Attorney General’s office has recouped $3.8 million in Medicaid funds from more than 65 child foster care facilities.

“Taxpayer money spent on New York's most vulnerable kids must be safeguarded – not wasted,” Attorney General Schneiderman said. “My office will remain vigilant to ensure that providers bill Medicaid for services that are actually rendered and that funds meant to help our neediest kids are spent to care for them.”

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