The United States and the Commonwealth of Massachusetts investigated the allegations after three whistleblowers filed a False Claims Act complaint in the US District Court for the District of Massachusetts in 2018. The whistleblowers will receive 17 percent of the settlement amount.
Steward Health Care System is one of the country’s largest private for-profit healthcare networks. The system owns multiple hospitals in Massachusetts, including for-profit hospital Steward Good Samaritan Medical Center, Inc. (GSMC) in Brockton.
The complaint alleged that GSMC formed an agreement with Brockton Urology Clinic in 2011 directing the clinic to establish a Prostate Cancer Center of Excellence at GSMC. However, Steward admitted that GSMC did not have a Prostate Cancer Center of Excellence as of January 2012, and Brockton Urology did not provide the services included in the agreement.
Despite not offering the required services, GSMC allegedly paid Brockton Urology according to the agreement from April 2011 through December 2017. In return, Brockton Urology referred patients to GSMC, the settlement noted.
According to the US Department of Justice (DOJ), the US reached a settlement agreement with Brockton Urology in February 2022, in which the clinic agreed to pay $100,000 to resolve the False Claims Act violations.
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