Halifax Health board unanimously votes to settle lawsuit

The Board of Commissioners of Daytona Beach, Fla.-based Halifax Health have unanimously voted to settle the second part of a five-year legal battle for $1 million plus $4.5 million to be paid in fees to the whistle-blower's attorneys, according to a report in The Daytona Beach News-Journal report.

The lawsuit filed against Halifax alleged the healthcare provider knowingly violated the False Claims Act and Stark Law by executing contracts with six medical oncologists that included improper incentive bonuses.

The lawsuit also alleged Halifax knowingly acted in violation of the law by paying three neurosurgeons more than fair market value for their work, and that the hospital admitted patients who did not need to be admitted and then billed Medicare for their care.

Because of the complexity and breadth of the lawsuit, U.S. District Judge Gregory Presnell agreed to split the case into two trials: one focusing on bonuses paid to the oncologists and on the alleged excessive compensation paid to the three neurosurgeons, and a second focusing on the fraudulent billing for patients who were unnecessarily admitted to the hospital.

The first trial was scheduled to begin March 3, but just before the jury was seated, Halifax and prosecutors came to a settlement agreement for $85 million.

Although Halifax has agreed to settle the second part of the case, the hospital has not admitted any wrongdoing.

"We are disappointed in paying anything for providing exception care, but we are looking forward to putting this behind us and moving forward," said Jeff Feasel, CEO of Halifax, in a statement.

The final step in resolving the case is having the settlement entered in federal court in Orlando, Fla., and having the case dismissed.

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