On March 29, the Department of Justice announced that Covenant Healthcare paid $69 million to settle possible False Claims Act violations. Covenant Healthcare is a regional hospital system in Saginaw, Michigan where it is the largest employer in the county. It paid the settlements following allegations of “improper financial relationships” with eight physicians and a physician-owned investment group that led to the submission of false claims to Medicare, Medicaid, TRICARE, and FECA programs.
The allegations came to light from the whistleblower Dr. Stacy Goldsholl. Dr. Goldsholl previously served as the Executive Administrator and Chief Medical Officer of a division within the hospital system. The qui tam provisions of the False Claims Act enable private citizens to file lawsuits on behalf of the government if they know of an individual or company defrauding the government. Qui tam whistleblowers are eligible to receive between 15 and 30% of the government’s recovery. Dr. Goldsholl will receive a combined $12,384,927.36 from the settlements.
The settlement, which began with Dr. Goldsholl’s claims in 2012, was finalized in 2021 but kept confidential while the Department of Justice continued investigations into electrophysiologist Dr. Asim Yunus and neurosurgeon Dr. Mark Adams. In the end, Dr. Adams agreed to pay the United States $406,551.15, and Dr. Yunus will pay $345,987.54.
The Department of Justice additionally utilized the Anti-Kickback Statute (AKS) and the Physician...
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