A judge has granted the U.S. Department of Justice's request to intervene in a lawsuit accusing Methodist Le Bonheur Healthcare of perpetrating a kickback scheme and committing Medicare and Medicaid fraud.
The ruling handed down Friday in the U.S. District Court of Middle Tennessee allows the DOJ to jointly prosecute the ongoing lawsuit against Methodist.
However, the court said the intervention would only apply to current defendants, rebuffing the DOJ's desire to bring West Cancer Clinic back into the suit. The organization was dismissed from the suit in 2021 after reaching a settlement with the original plaintiffs.
"The Court does not find good cause to reinsert West at this stage of the case — to do so would not only prejudice West, but would cause undue delay in the proceedings," according to the memorandum issued Friday.
The federal government does not intend to assert claims against two individuals currently listed as defendants — the Methodist system's former CEO Gary Shorb and former CFO Chris McLean.
Tabrina Davis, vice president for marking and communication for Methodist, said the network was disappointed with the court's decision but "we remain confident that MLH’s affiliation with West Clinic was proper and reflected customary and legal business arrangements."
"It is not in dispute that this relationship provided much-needed cancer care to our community and delivered the highest possible level of services to patients," she said in an email. "The government’s...
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