EMH-Regional Medical Center And North Ohio Art Center To Pay $4.4 Million For FCA Violations

On January 7, 2013, the U.S. Department of Justice announced a settlement resolving False Claims Act allegations against EMH Regional Medical Center (“EMH”) and North Ohio Art Center, Inc. (“NOHC”).  It was alleged that EMH and NOHC performed unnecessary stent procedures on patients between 2001 and 2006, including those reimbursed by Medicare.  As part of the settlement, EMH will pay $3,863,857 and NOHC will pay $541,870.

The suit was initiated under the False Claims Act by Kenny Loughner, the former manager of EMH’s catheterization and electrophysiology laboratory.  Mr. Loughner will receive $660,859 as part of the settlement.  The investigation was jointly handled by the U.S. Attorney’s Office for the Northern District of Ohio, the DOJ’s Civil Division, the Office of the Inspector General of the Department of Health and Human Services, and the FBI.

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