Steward Health Care System has agreed to settle a whistleblower case alleging kickback payments for patient referrals to its accountable care organization, according to an announcement from the plaintiffs’ legal representation.
The for-profit system will pay roughly $4.7 million to the federal government and the Commonwealth of Massachusetts, which took up the 2018 case on behalf of three whistleblowers who will receive and split approximately $725,000 of the settlement.
“Our healthcare system is meant to function as a dedicated servant to its patients and employees alike,” Gary Azorsky, a partner at Cohen Milstein Sellers & Toll, the firm representing the whistleblowers, said in the announcement. “Settlements such as this one serve to facilitate this important goal.”
Steward did not admit to violations of the False Claims Act that were alleged in the complaint. Federal and state governments also said they will voluntarily dismiss the complaint and are taking no position on Steward’s potential violations.
However, as part of the settlement, the health system disclosed and accepted responsibility for three areas of conduct related to the allegations.
According to the whistleblowers’ law firm, Steward disclosed that it had “failed to charge the proper rent” on the leases of dozens of physicians, physician organizations and non-physician organizations.
The system disclosed that one hospital, Steward Good Samaritan Medical Center, had entered into a compensation...
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