Category: Healthcare

Kickback Case Survives Motion to Dismiss

A fraud suit alleging that five hospitals in the south bribed local clinics to refer undocumented immigrants to the hospitals to give birth has survived a motion to dismiss.


In the suit, captioned U.S. ex rel. Williams v. Health Management Associates (M.D. Ga.), a whistleblower alleges that the Georgia- and South Carolina-based hospitals paid local clinics fees,

$9.9 Million Paid by Medtronic, Inc. to Resolve Kickback Claims

Medtronic, Inc., a Fridley, Minnesota company, is alleged to have used various types of payments as incentives to physicians for implantation of pacemakers and defibrillators.  Under the False Claims Act, the company agreed to pay 9.9 million dollars to resolve these allegations.

Medtronic induced the physicians to implant these devices by:  paying the physicians for speaking engagements to increase the flow of referrals;

$40.9 Million to be Paid by King’s Daughters Medical Center to Resolve False Claims

The Justice Department announced that Ashland Hospital Corp. d/b/a King’s Daughters Medical Center (KDMC) has agreed to pay nearly $41 million for needless medical procedures, between 2006 and 2011, including coronary stents and diagnostic catherizations that were submitted falsely to the Kentucky Medicaid and federal Medicare programs.  It is also alleged that the hospital had a prohibited financial relationship with physician to refer patients to the hospital.

Government Settles False Claims Act Allegations Against Kansas Cancer Treatment Facility And Its Owner

The Hope Cancer Institute, based in Kansas City, Kansas, and its Director, Dr. Raj Sadasivan, will pay $2.9 million to resolve a lawsuit filed by three former employees of the under the qui tam provisions of the False Claims Act. The suit alleges that from 2007 to 2011, Sadasivan instructed the cancer treatment center to submit bills for dosages of the cancer drugs Rituxan,

Big Pharma Takes A Big Hit

Endo Health and its subsidiary Endo Pharmaceuticals will pay $192 million to settle false claims act after whistleblower uncovered off-label marketing of Lidoderm. The FDA only approved Lidoderm for treatment of a complication of shingles. The company required its sales staff to market the drug for unapproved ailments including low-back pain and carpal tunnel syndrome.

Referrals Get Ohio Hospital Into Hot Water

Memorial Hospital of Ohio recently settled government claims related to improper referrals under the Anti-kickback and Stark statutes. These statutes restrict the financial incentives that health care providers can provide to other health care providers. The allegations concerned Memorial Hospital’s financial arrangement with a joint venture it had with a pain management physician and a relationship with an ophthalmologist who sold intraocular lenses at inflated prices through the hospital.

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