Yale - New Haven Hospital comes under investigation for overcharging Medicare: State Attorney General Richard Blumenthal is investigating whether Yale-New Haven Hospital and other state nonprofit hospitals are overcharging Medicare and other government agencies for medical supplies. Blumenthal’s investigation centers on the practices of a Texas company that coordinates purchasing of medical supplies for Yale-New Haven Hospital and other nonprofit hospitals in the state. The company, Novation, negotiates contracts that hospitals use to buy everything from sutures and rubber gloves to X-ray machines. The company is also under investigation by the federal Justice Department, which is also trying to determine whether hospitals who do business with Novation are overcharging Medicare and other government agencies for medical supplies. The overcharging centers on whether hospitals are failing to report rebates, discounts or other payments given to them if they meet certain purchasing targets, meaning that Medicare and Medicaid would be charged higher prices for the products than the hospitals are actually spending. In Connecticut, Novation sells to hospitals that account for 67 percent of the state’s hospital beds, Blumenthal said.