Headlines that Matter for Companies and Executives in Regulated Industries
Community Health Network Inc. (CHN) has agreed to pay $345,000,000 to settle allegations that it violated the False Claims Act (FCA) for knowingly submitting or causing the submission of false claims to the Medicare program from 2008 to 2017.
On January 6, 2020, the government filed a complaint alleging that CHN engaged in a scheme to recruit and employ hundreds of physicians to secure their downstream revenue and referrals. In exchange for capturing the revenue and referrals, CHN allegedly offered and paid salaries to physicians that were significantly higher than what they received in private practice and well above fair market value. The US Department of Justice (DOJ) alleged that CHN disregarded repeated warnings that their proposed compensation for physicians was too high from valuation firms it had engaged, and that it provided false compensation figures to a valuation firm in order to receive a favorable opinion.
The settlement arises from a whistleblower complaint filed in 2014 by Thomas Fischer, CHN’s former CFO and COO. According to the settlement agreement, CHN has agreed to pay $345 million and enter into a five-year corporate integrity agreement with the US Department of Health and Human Services Office of Inspector General (OIG-HHS).
The DOJ press release can be found here and the settlement agreement can be found here.
CINCINNATI (WXIX) - Cincinnati-based The Kroger Co. is under federal investigation for alleged False Claims Act violations in its opioid dispensing practices, according to newly filed court record...