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Texas Hospital Group Pays U.S. $27.5 Million to Settle False Claims Act Allegations
- Wednesday, 18 November 2009 22:21
- Last Updated on Wednesday, 05 September 2012 06:25
- Young Law Group Admin
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On October 30, the Department of Justice announced that McAllen Hospitals L.P., d/b/a/ South Texas Health System, a subsidiary of Pennsylvania-based Universal Health Services Inc., has agreed to pay $27.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute between 1999 and 2006, by paying illegal compensation to doctors in order to induce them to refer patients to hospitals within the group. The settlement resolves a qui tam lawsuit brought by a whistleblower in 2005.
The whistleblower, a former employee, will receive $5.5 million from the proceeds of the settlement.
SOURCE U.S. Department of Justice
Read the full press release here.