Florida hospitals file suit in protest of MedQuist's transcription billing methods.(Hospital Purchasing)(South Broward Hospital District and Memorial Regional Hospital)(Brief Article)

Hospital Materials Management, March, 2005

Following a class action lawsuit led by South Broward Hospital District and Memorial Regional Hospital, Hollywood, Fla., 646 beds, transcription supplier MedQuist, Mount Laurel, N.J., on Jan. 25 received an administrative subpoena from the U.S. attorney's office for the District of Massachusetts.

The subpoena is the latest event in an investigation that began in early 2004, when independent accounting firms Debevoise & Plimpton and PricewaterhouseCoopers questioned the way MedQuist charges hospitals and other customers for its services. In the suit, the hospitals claim they were wrongfully and fraudulently overcharged for transcription services by MedQuist.

The auditors found the company used ratios and formulas to determine the number of...

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