Indianapolis-based Community Health Network has paid $145.7 million to the Justice Department and the state of Indiana to settle alleged violations of the Anti-Kickback Statute and False Claims Act.
The settlement stems from a 2014 whistleblower complaint filed by the health system's former CFO under the qui tam provisions of the False Claims Act.
Thomas Fischer, who served as CHN's CFO for eight years before his termination in 2013, alleged he was fired in retaliation for raising concerns about a scheme involving illegal kickbacks to physicians for patient referrals, according to the Indiana Business Journal.
In addition to the $145.7 million settlement, CHN will pay $6.3 million in January to resolve an "employment-related settlement" with Mr. Fischer.
"The whistleblower's attorney's fees are still being negotiated but $14 million was accrued in the consolidated balance sheet as of September 30, 2024," the health system said in financial documents filed Dec. 31.
CHN denied wrongdoing but said it agreed to settle the cases to avoid ongoing legal costs and risks.
In December 2023, CHN paid $345 million to resolve allegations that — dating back to 2008 — it violated the False Claims Act and Stark law. The 10-hospital system allegedly knowingly submitted claims to Medicare for services that were referred in violation of the Stark law, which requires that the compensation of employed physicians be fair market value and cannot account for the volume of referrals.