University Hospital Health Systems settles allegations of improper referrals
Editor: Mike Bothwell
Profession: Qui Tam Attorney
August 28, 2006
Category: Settlements and Verdicts
University Hospital Health Systems has agreed to settle allegations that some of its affiliated physicians improperly referred Medicare cases. The allegations, brought about by a federal whistleblower lawsuit three years ago, will cost the Cleveland hospital system $14 million.
According to the Justice Department, who negotiated the settlement, the system and its primary medical campus, University Hospitals of Cleveland, allegedly made improper financial arrangements with doctors to encourage them to refer Medicare cases to other doctors within the system. Dr. Thomas J. Kirby, a heart surgeon formerly on the hospital system's staff, brought the whistleblower lawsuit shortly after being removed from the staff. He will receive a $1.5 million whistleblower fee pursuant to the False Claims Act.
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