Interest Group News: Healthcare Fraud & Compliance
False Claims Act Settlements
Several fraud related settlements were recently announced. A lawsuit under the False Claims Act against the University Hospitals of Cleveland was settled for $13,880,000. The lawsuit alleged that the hospitals entered into illegal financial arrangements with physicians in order to induce referrals from the physicians to the hospitals. The kickbacks allegedly included phony medical directorships, hospital payment of staff salaries at private physician practices, excess purchase prices for physician practices and no-interest “loans” that didn't require repayment.
Our Lady of Lourdes Regional Medical Center agreed to pay $3.8 million to settle a False Claims Act case related to medically unnecessary elective angiograms, angioplasties and stenting procedures performed at the hospital by Dr. Mehmood Patel between 1999 and 2003.
Finally, Beverly Enterprises agreed to pay $20 million to settle a False Claims Act case against a formerly owned subsidiary, MK Medical, related to billing Medicare and Medicaid for durable medical equipment to beneficiaries without obtaining the proper claims and medical documentation.
Related press releases and a copy of our Lady of Lourdes’ corporate integrity agreement can be found by accessing the links below:
