DOJ: Covenant Healthcare paid $69M in 2021 false claims settlement

A Michigan hospital system paid $69 million to settle whistleblower allegations it engaged in illegal referral and kickback schemes.

Covenant Healthcare System rented office space to a physician but forgave the rent in exchange for the physician referring Medicare patients to the hospital system in violation of the federal Anti-Kickback Statute, the Department of Justice (DOJ) said in a press release Wednesday.

Covenant also allegedly employed physicians, including Mark Adams and Asim Yunus, between 2006 and 2016 who self-referred patients to Covenant in violation of the federal Physician Self-Referral Law. Also known as the Stark Law, the rule aims to prevent doctors from steering Medicare patients to facilities in which they have a financial interest.