facebooktwitterRSS
- Advertisement -
  • Most Commentedmost commented up
  • Most Emailedmost emailed up
  • Popularmost popular up
- Advertisement -
 

« News Home

$1.1 million payback for claim agency overbilled



Published: Sun, July 10, 2005 @ 12:00 a.m.



A state audit revealed the agency overbilled taxpayers in several counties.

PITTSBURGH (AP) -- A nonprofit agency that takes care of mentally retarded and disabled people will pay more $1.1 million to settle claims that it overbilled the state and seven southwestern counties for its services.

Passavant Memorial Homes of Harmarville must pay the money over seven years with no interest, according to its attorney, Jay D. Marinstein.

"We're very pleased with the settlement. We said from the start that the allegations were far in excess of the real issues involved in the case," he said.

A 2002 Allegheny County audit found the nonprofit overbilled taxpayers by more than $5.3 million.

The state later audited the nonprofit and concluded Passavant had overbilled taxpayers in several counties by $2.2 million, saying that Allegheny County auditors misunderstood a relevant regulation and noting that Passavant wouldn't share key documents. Passavant will pay half that amount to settle the claims.

Last year, Passavant was fined $450,000 and agreed to revise its pay formula for top executives. The state Attorney General's Office had sued after the Pittsburgh Tribune-Review published stories alleging excessive executive pay and lax internal controls.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.




Comments

Use the comment form below to begin a discussion about this content.


News
Opinion
Entertainment
Sports
Marketplace
Classifieds
Records
Discussions
Community
Help
Forms
Neighbors

HomeTerms of UsePrivacy StatementAdvertiseStaff DirectoryHelp
© 2014 Vindy.com. All rights reserved. A service of The Vindicator.
107 Vindicator Square. Youngstown, OH 44503

Phone Main: 330.747.1471 • Interactive Advertising: 330.740.2955 • Classified Advertising: 330.746.6565
Sponsored Links: Vindy Wheels | Vindy Jobs | Vindy Homes | Pittsburgh International Airport