But there are some severe penalties for falsifying records if the patient doesn't have CV19 or that is not the main reason for them being in the hospital.

Essentially, there is an average payment rate for each kind of disease (with modifications for comorbidities and other factors). CV19 pays more than pneumonia, appendicitis, etc. But Medicare and other payers review claims for reimbursement for evidence of so-called upcoding to achieve enhanced reimbursement.

However, doctors don't get paid more for a given type service based upon diagnoses. He's totally wrong there.

Like everything with trump, he heard something and didn't care about the facts. It sounded like a good excuse for his poor handling of CV19.