Halifax Health Reaches $1M Tentative Agreement in Whistle-Blower Case

Daytona Beach, Fla.-based Halifax Health has reached a $1 million tentative agreement that would resolve the second part of the lawsuit brought against the healthcare organization under the qui tam, or whistle-blower, provision of the False Claims Act, according to a report from The Daytona News-Journal.

The $1 million settlement falls far below the $72.5 million in damages the whistle-blower's attorneys had calculated in the case. If the agreement is approved by Halifax's Board of Directors, the lawsuit, which has originally filed in 2009, will be resolved.

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.

Halifax has spent more than $24 million on attorneys' fees in this case, and it was also ordered to pay $5.4 million for the whistle-blower's attorneys' fees in May, according to the News-Journal.

The tentative agreement in the second part of the case will have to be reviewed by the government and any objections to the agreement will be filed by July 21.

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