The following investigations, lawsuits, settlements or other legal developments involving healthcare providers were reported within the past month, beginning with the most recent.
1. Saint Joseph London Settles to Pay $16.5M to Settle Allegations of Unnecessary Procedures, False Claims
Saint Joseph London (Ky.) Hospital agreed to pay $16.5 million to resolve allegations that it fraudulently billed state and federal healthcare programs after performing unnecessary heart procedures.
2. Orthopedic Clinics to Pay $2M to Settle False Claims Allegations
Knoxville-based Tennessee Orthopaedic Clinics P.C. and Kingston, Tenn.-based Appalachian Orthopaedic Clinics P.C. will pay a total of $1.85 million to settle allegations that they violated state and federal False Claims Acts by billing the government for reimported osteoarthritis drugs.
3. Judge Sides With FTC, Ruling St. Luke's Violated Antitrust Law
A federal judge sided with the Federal Trade Commission today, ruling that Boise, Idaho-based St. Luke's Health System must unwind its 2012 acquisition of a 40-physician medical group.
4. Courts May Now Assess FCA Penalties Under Statutory Minimums
Courts may now assess False Claims Act penalties that fall below the statutory minimum, leaving monetary penalties to the discretion of the courts.
5. Surgeon Dispute Halts University of Arizona's Transplant Programs
Transplant services at the University of Arizona Medical Center in Tucson are on hiatus due to a "bitter professional dispute," according to an Arizona Daily Star report.
6. Employees Sue Hospital Over CT Radiation Exposure
Five former and current employees of Methodist Medical Center in Oak Ridge, Tenn., filed lawsuits alleging inadequate hospital construction led them to excessive radiation exposure from CT scans.
7. Appeals Court Reaffirms FCA Dismissal in Minnesota Hospital
The U.S. Court of Appeals for the Eighth Circuit upheld the District Court of Minnesota's previous dismissal of a False Claims Act complaint in Dunn vs. North Memorial Health Care in December 2012, saying the case did not sufficiently identify an exact instance of an alleged submitted false claim.
8. North Carolina Physicians Sue State's Medicaid Claim Processing System
Seven North Carolina physician practices have sued the state's Department of Health and Human Services over the ineffectiveness of NC Tracks, the state's new Medicaid claim processing system, which has allegedly caused millions of dollars in damage to Medicaid providers.
9. CareFusion to Pay $40M to Settle Kickback Allegations
San Diego-based CareFusion will pay $40.1 million to settle allegations it violated the False Claims Act by paying kickbacks and promoting its products for uses not approved by the U.S. Food and Drug Administration.
10. Minnesota Hospitals Ordered to Destroy Newborn Blood Samples, Pay $1M in Legal Costs
The Minnesota Department of Health started destroying over one million newborn blood samples and will pay almost $1 million in legal costs, per order by a 2011 ruling by the Minnesota Supreme Court.
11. HMA, Ex-CEO Gary Newsome Accused of False Claims, Pressuring ER Physicians to Increase Admissions
Naples, Fla.-based Health Management Associates has been named in another complaint alleging false claims, but this lawsuit also names Gary Newsome, former Health Management president and CEO, as a defendant for being personally involved in the scheme.
12. Judge: Halifax Didn't Violate Anti-Kickback Statute With Physician Bonuses
A federal judge has ruled that Halifax Hospital Medical Center in Daytona Beach, Fla., did not violate the Anti-Kickback Statute through its bonuses to physicians.
13. HMA Allegedly Paid Millions of Dollars in Kickbacks to More Than 100 Physicians
Two former C-suite executives at Lancaster (Pa.) Regional Medical Center and Heart of Lancaster Regional Medical Center, affiliates of Naples, Fla.-based Health Management Associates, have filed suit against the hospital chain, claiming the health system paid millions of dollars in estimated kickbacks to more than 100 physicians who participated in joint ventures or allegedly "bogus" co-management agreements.
14. Prime Healthcare Faces $50M in False Claims Allegations
An employee whistleblower claims Ontario, Calif.-based Prime Healthcare Services submitted $50 million in false claims for patient stays.
15. St. Mary Medical Center to Pay $2.3M to Resolve Alleged Overpayments to Physicians
St. Mary Medical Center in Langhorne, Pa., agreed to pay $2.3 million to the government to resolve allegations that it improperly administered several physician income guarantee agreements.
16. Beverly Hospital to Pay $200k to Settle Patient Dumping Allegations
Beverly Hospital in Montebello, Calif., will pay $200,000 to settle allegations of patient dumping.