By
Kyle Brasseur2023-12-19T22:20:00
Indiana-based Community Health Network agreed to pay $345 million as part of a settlement with the Department of Justice (DOJ) resolving allegations it overcompensated physicians it employed at a rate that violated the Stark Law.
Of the settlement total, $167 million is restitution, according to the settlement agreement published by the DOJ on Tuesday. The agency intervened in the case in 2020 on the back of allegations raised in 2014 by Community’s former Chief Financial and Chief Operating Officer Thomas Fischer under the qui tam provisions of the False Claims Act. Fischer’s whistleblower award has yet to be determined.
The case marks the largest False Claims Act settlement based on Stark Law violations in the history of the DOJ.
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The announcement of a record year in several areas of False Claims Act enforcement at the Department of Justice was accompanied by a warning that more significant cases are coming, particularly regarding cybersecurity-related claims.
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H. Lee Moffitt Cancer Center & Research Institute Hospital agreed to pay nearly $20 million as part of a settlement with the Department of Justice addressing alleged violations of the False Claims Act for improperly billing federal healthcare programs.
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The former chief compliance officer of ChristianaCare Health System will receive more than $12 million as part of a settlement addressing his allegations of kickbacks and other False Claims Act violations at the Delaware-based hospital network.
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Meta says it is no longer under investigation by the U.S. Consumer Financial Protection Bureau (CFPB), the latest instance of the agency scaling back enforcement under President Donald Trump.
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Texas Attorney General Ken Paxton sued two pharmaceutical companies for ”deceptively marketing Tylenol to pregnant mothers” despite risks linked to autism. The filing came two days before HHS Secretary Robert F. Kennedy Jr. appeared to walk back the claims.
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The Consumer Financial Protection Bureau shut down a registry of non-bank financial firms that broke consumer laws. The agency cites the costs being ”not justified by the speculative and unquantified benefits to consumers.”
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