
HCA Holdings (NYSE:HCA) took a hit on Wall Street today after the hospital chain revealed a federal probe into several hospitals’ use of heart rhythm implants.
The U.S. Justice Dept. launched an investigation into the nationwide hospital operator and whether its use of implantable cardiac defibrillators met Medicare necessity criteria for reimbursement.
The DOJ will review certain billing and medical records at 95 HCA sites covering a period from October 2003 to the present, according to HCA’s latest financial report.
Last month the Civil Division of the U.S. Attorney’s Office in Miami also asked to review existing evaluating of the medical necessity of interventional cardiology services provided "at any company facility," of which there are about 10, according to the report.
"The review could potentially give rise to claims against the Company under the federal FCA or other statutes, regulations or laws," according to the company. "Depending on whether the underlying conduct in these or future inquiries or investigations could be considered systemic, their resolution could have a material, adverse effect on our financial position, results of operations and liquidity."
HCA shares lost 6% by mid-afternoon, trading at $24.98 as of about 3 p.m.