Rush University Medical Center in Chicago has agreed to pay $1.5 million to settle False Claims Act allegations. A whistleblower alleged that the teaching hospital entered into prohibited lease agreements for office space provided to two doctors and three practices. According to DOJ, these arrangements violated the Stark law, which places limits on physician self-referral.

Rush agrees to $1.5 million settlement

By Gregg Blesch 

Posted: March 9, 2010 - 4:00 pm ET

Rush University Medical Center agreed to pay $1.5 million to resolve allegations that the 681-bed teaching hospital entered into prohibited lease arrangements for office space provided to two physicians and three practices, the U.S. Justice Department announced.

The settlement stems from a whistle-blower lawsuit filed under the False Claims Act in 2004 by orthopedic surgeon Robert Goldberg and June Beecham, a former real estate director for the medical center. The Justice Department concluded that several arrangements violate the federal restrictions on physician self-referral known as the Stark law.The agreement stipulates that Rush does not admit any liability or wrongdoing by settling the matter.

“Rush cooperated fully in this process,” the medical center said in a written statement. “Rush had initiated efforts to correct the problems raised in the government's inquiry before the formal subpoena was received. Because Rush satisfactorily resolved the issues underpinning these technical problems, the government will not require Rush to have an ongoing corporate compliance agreement or corporate integrity agreement.”

Goldberg and Beecham, whose lawsuit also targets other parties to the agreements, are set to share $270,760 from the settlement payment.

SOURCE ModernHealthcare.com

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