Simi Valley Hospital and Health Care Services paid the government $3.65 million to resolve allegations that is submitted false claims to Medicare. The hospital made the payment without admitting any wrongdoing in order to resolve a fraud investigation into the its billing practices. In 2000, the Department of Health and Human Services undertook a nationwide review of compliance with pneumonia billing practices, and claimed that Simi Valley Hospital had misclassified some cases of pneumonia as “severe respiratory infections,” a more serious form of pneumonia than was treated. In a prepared statement, hospital officials said it would provide staff with additional coding education to stay current with Medicare standards and has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services to ensure continued compliance with Medicare and other federal health programs.