Hospital turbocharging

A national hospital chain retained CRA to evaluate class certification, causation, and damages claims in a RICO action alleging “turbocharging” (i.e., inflating reported costs, thereby increasing Medicare payments to the detriment of other hospitals). After analyzing Medicare billing data and cost reports to expose errors in the plaintiffs’ damages model, CRA’s expert testimony illustrated that some class members would collect damages despite engaging in the same behavior alleged by the plaintiff. The court ultimately denied class certification and granted the defendant’s motion for summary judgment.