Thursday, October 30, 2014Last Update: 4:18 PM PT

October 30, 2014 11:58 PM

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SAN FRANCISCO (CN) - Dignity Health - the nation's fifth-largest hospital chain - will pay the feds $37 million to settle allegations that it submitted false claims to Medicare and TRICARE by admitting patients into the hospital that could have been treated as outpatients, the Justice Department said Thursday.

Based in California, Dignity operates 39 hospitals and until 2012 was an official ministry of the Roman Catholic Church. It remains a nonprofit corporation.

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