The U.S. Attorney’s Office for the Southern District of Texas announced on February 22 that Cornerstone Healthcare Group Holding Inc. and CHG Hospital Medical Center LLC. dba Cornerstone Hospital Medical Center will pay $21,637,512 to settle allegations that it improperly billed Medicare and violated the False Claims Act. The case stemmed from a qui tam whistleblower lawsuit filed in 2018 by someone who worked at Cornerstone Medical Center, “formerly a long-term acute care facility located in Houston that operated as a long-term care hospital.”
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, if one occurs.
According to the press release, “Cornerstone was in the business of providing extended medical and rehabilitative care to individuals who qualified as clinically complex and possessed multiple acute and/or chronic conditions. Through its subsidiaries, CHG Holding operated specialty hospitals throughout the United States, including Cornerstone Medical Center which is no longer in business.”
This case stemmed from a qui tam whistleblower complaint filed on September 28, 2018 by someone who used to work at the facility. While they were employed there, the whistleblower “witnessed, among other things, unlicensed, unauthorized students of Drs....
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