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Stark Law 19 articles

Whistleblower Helps U.S. Recover $8.1 Million from California Hospital Group

A whistleblower lawsuit accusing a Los Angeles-based hospital group of engaging in unlawful financial arrangements has led to an $8.1 million settlement with the U.S. Government. Avanti Hospitals LLC and six of its owners agreed to pay the U.S. $8.1 million to settle whistleblower allegations that they violated the Anti-Kickback Statute, the Physician Self-Referral Law (also known as the Stark Law), and the False Claims Act. The lawsuit, filed by Dr. Joshua Luke, the former CEO of Gardena Hospital, alleged that Avanti, Gardena Hospital, and at least two other Avanti affiliates bribed a high-referring physician with payments that exceeded the ... Read More

Whistleblower Doctor Who Led U.S. to $84.5 Million Settlement ‘Risked Everything’

A neuroscientist whistleblower who witnessed corruption within the Detroit-area hospital system where he worked and took legal action despite the serious risks to his career has helped the U.S. government recover nearly $85 million for the Medicare, Medicaid and TRICARE programs. Dr. David Felten filed a False Claims Act lawsuit against William Beaumont Hospitals in 2010 alleging the regional hospital system engaged in improper financial relationships with eight referring physicians, resulting in the submission of false claims to federal health care programs as well as violations of the Anti-Kickback Statute and Stark Law. Dr. Felten, a leading figure in the ... Read More

Whistleblower Helps U.S. Recover $26 Million From Florida Oncology Group

A whistleblower proved to be instrumental in exposing illegal practices within 21st Century Oncology Inc. of Fort Myers, Florida, and several of the company’s subsidiaries and affiliates, and the defendant companies have agreed to pay $26 million to resolve accusations of False Claims Act and Stark Law violations, the U.S. Department of Justice announced. According to the Fort Myers News-Press, Matthew Moore, a health care executive who briefly served as the interim vice president of financial planning at 21st Century Oncology, filed a whistleblower lawsuit against 21st Century in February 2016. Mr. Moore’s whistleblower lawsuit triggered a federal probe of 21st Century’s ... Read More

S.C. Hospital Settles Whistleblower Lawsuit Alleging Unlawful Referral Schemes

A South Carolina hospital has agreed to pay the U.S. government $17 million to resolve a whistleblower lawsuit alleging that it violated the Physician Self-Referral Law (the Stark Law) and the False Claims Act by engaging in improper financial arrangements with more than two dozen physicians, the U.S. Justice Department said Thursday. The settlement resolves allegations filed in a False Claims Act lawsuit by Dr. David Hammett, a former physician employed by Lexington Medical Center, in federal court in Columbia, S.C. Dr. Hammett will receive approximately $4.5 million of the recovery amount as a whistleblower award, the Justice Department said. ... Read More

Oregon Health Care Provider Sued For Medicare Fraud, Whistleblower Retaliation

The former CEO of Architrave Health, LLC, a major Oregon health care provider, filed a whistleblower lawsuit against the company Tuesday, alleging he was terminated and then blacklisted in the medical community as punishment for reporting millions of dollars in fraudulent Medicare billings and improper financial relationships with local physicians. According to The Oregonian, the Medicare fraud accusations made by Dr. Robert Dannenhoffer against Architrave are potentially “explosive” in a state that prides itself for its “progressive healthcare reform.” If is claims stand up in court, The Oregonian reports, it means “a major medical provider was prepared to look the ... Read More

California Hospital Pays $3.2 Million To Resolve False claims Act, Stark Law Violations

Tri-City Medical Center, an Oceanside, Calif., hospital, has agreed to pay the U.S. more than $3.2 to resolve allegations that it violated the Stark Law and False Claims Act by maintaining improper financial arrangements with physicians in the community that put business profits ahead of patient needs, federal prosecutors said Friday. Tri-City Medical Center had nearly 100 financial arrangements with physicians and physician groups that did not comply with the Stark Law and violated Medicare program rules, the U.S. Justice Department said. These arrangements occurred from 2008 to 2011. Several of the arrangements had written agreements that had expired, missing ... Read More

PharMerica Pays $9.25 Million to Settle Whistleblowers’ Kickback Allegations

PharMerica Corp., the second-largest nursing home pharmacy, will pay $9.25 million to settle allegations stemming from a whistleblower lawsuit that it received generous kickbacks from Abbott Laboratories in exchange for pushing its anti-epileptic drug Depakote on nursing home patients. Nursing homes depend on pharmacy consultants and managers, such as those who work for PharMerica, to review the medical charts of resident patients once a month or more to make recommendations to physicians about what drugs should be prescribed for those residents. The settlement announced the U.S. Justice Department Oct. 7 resolves allegations that PharMerica sought and received illegal kickbacks from ... Read More

Whistleblower Complaint Recovers $69.5 million From Florida Hospital District

The North Broward Hospital District, a special taxing district in Florida that operates hospitals and other health care facilities, will pay the U.S. $69.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced Tuesday. The settlement resolves allegations of fraud brought to the federal government’s attention by Dr. Michael Reilly, who sued North Broward Hospital District under the whistleblower provisions of the False Claims Act, which authorizes individuals to sue on behalf of the U.S. Dr. Reilly and the U.S. accused the hospital district of ... Read More

Kentucky cardiologists settle health care fraud charges brought by whistleblowers

Two Kentucky cardiologists have agreed to pay $380,000 to settle allegations made by whistleblowers that they violated the U.S. False Claims Act, federal Anti-Kickback Statute, and the Stark Law by making “sham agreements” with a London, Ky., hospital that resulted in referrals for cardiology procedures and other health care services. According to the U.S. Justice Department, Dr. Satyabrata Chatterjee and Dr. Ashwini Anand jointly own Cumberland Clinic, a physician group that provides cardiology services. The government alleged that St. Joseph Hospital of London, Kentucky had agreements with the doctors under which the hospital paid the physicians to provide fictitious management ... Read More

Preparation is key to a successful whistleblower case

Fraud, abuse, mismanagement, and other forms of wrongdoing are all too common in both the private and public sectors of society these days – an unfortunate fact that elevates the role of the whistleblower in the fight against misconduct and corruption. With lawyers seeing more and more potential whistleblower cases pour in, it’s vital that whistleblowers properly document and state their case before taking it to a lawyer for review. After whistleblowers select experienced and competent legal counsel for their False Claims Act case, they should prepare a concise and well documented “pitch.” The Taxpayers Against Fraud (TAF) Education Fund ... Read More