Health System Resolves False Claims Act Allegations

A multihospital health system resolved False Claims Act allegations involving allegedly unlawful financial relationships with a cardiology practice in alleged violation of the Anti-Kickback Statute and the Stark Law. Faegre Drinker represented the health system in the matter. The health system was separately alleged in a second False Claims Act matter to have billed for medically unnecessary invasive cardiac procedures. The U.S. Attorney’s Office and the Office of the Inspector General of the Department of Health and Human Services served multiple civil investigative demands for documents and testimony. After extensive settlement negotiations, the health system settled both matters for $35 million.