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Rex Healthcare, a 655-bed hospital in Raleigh, N.C., agreed to pay the United States 1.9 million, plus interest, to settle allegations that it submitted false claims to Medicare. The the hospital was alleged to have routinely submitted claims to Medicare for a variety of minimally-invasive procedures during the period 2004 through 2007, which the hospital classified as inpatient admissions in order to increase its reimbursement from Medicare, despite the absence of medical necessity justifying the more expensive inpatient admissions.