SAGINAW, MI — Covenant HealthCare and two physicians have paid more than $69 million in three related civil settlements to resolve possible False Claims Act violations.
Details of the settlements and the investigation that led to them were recently announced by United States Attorney Dawn N. Ison, Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General, Central Area Field Office and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
The Saginaw-based regional hospital system paid $69 million to resolve allegations under the False Claims Act of improper financial relationships with eight referring physicians and a physician-owned investment group, resulting in the submission of false claims to the Medicare, Medicaid, TRICARE and FECA programs, according to a news release issued by the U.S. Department of Justice, U.S. Attorney’s Office, Eastern District of Michigan. Two of these physicians, neurosurgeon Dr. Mark Adams and electrophysiologist Dr. Asim Yunus, will pay the United States $406,551.15 and $345,987.54, respectively, to resolve allegations related to their relationships with Covenant.
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