In a groundbreaking verdict, Ronald Sherman, the former chief compliance officer of ChristianaCare Health System, has won a $12 million settlement as a part of a False Claims Act (FCA) violation lawsuit against the hospital network. This case has not only opened a Pandora’s box regarding compliance and ethical behavior within the healthcare sector but also set a record for the largest FCA settlement in Delaware’s history.
ChristianaCare, Delaware’s largest hospital system, has been accused of providing free or below-market value services to nonemployee doctors in exchange for patient referrals. These referrals resulted in millions of dollars in hospital bills, primarily paid by government healthcare programs like Medicaid. The alleged fraudulent activity took place between April 2011 and September 2013 involving Christiana’s neonatology department, and between April 2011 and April 2017 concerning the cardiovascular surgery, urology, neurosurgery, and ear, nose, and throat departments.
Rather than trying to rectify the issue internally, ChristianaCare’s chief compliance officer at that time, Ronald Sherman, took an unconventional route. He filed a qui tam lawsuit, an action brought under the FCA that allows whistleblowers to sue on behalf of the government. Sherman’s lawsuit resulted in a $47 million settlement, out of which he received $12 million, a significant share of the settlement.
The settlement did not...
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