Ohio Hospital Settles False Claims Act Suit for $108 Million

A False Claims Act lawsuit, sparked by a whistle-blower suit in 2003 filed against the Health Alliance of Greater Cincinnati and then-member Christ Hospital, has been settled, with the Health Alliance and hospital agreeing to pay the government $108 million, despite continuing to deny the allegations of the suit.

The U.S. Justice Department joined the suit in 2008, and charged that between 1997 and 2004, cardiologists at the hospital were scheduled based on the amount of business, through referrals, that the doctors brought to the hospital. Essentially, DOJ argued, this arrangement, which created the opportunity for the cardiologists to bill for diagnostic services and pick up new patients for follow-up appointments, constituted an illegal kickback scheme.

For more information about fraud and anti-kickback statutes, please contact Adrienne Dresevic, Esq., and for more information about health care investigations and how to avoid increased governmental scrutiny, contact Robert S. Iwrey, Esq. Both Health Law Partners can be reached at (248) 996-8510.