West Columbia, S.C.-based LexingtonMedicalCenter agreed to settle a federal civil lawsuit for $17 million. The lawsuit was brought by a former physician employee-turned whistleblower, according to The State.
The lawsuit was filed in 2014 by David Hammett, MD. Dr. Hammett alleged Lexington Medical violated federal law by submitting illegal claims to Medicare and other federal health programs.
Dr. Hammett also alleged the medical center required physicians to send patients to its hospital for additional testing. Physicians would later be compensated for those referrals.
The lawsuit alleged Lexington Medical fired him after he refused to comply with the referral policies, according to The State.
The U.S. Department of Justice investigated and eventually joined the suit against the medical center. In settling the lawsuit, Lexington Medical admitted no fault, according to The State.
According to court documents, the medical center will pay the $17 million from its own funds.
The judgment is in stark contrast to a similar whistleblower case brought against Sumpter, S.C.-based TuomeyHospital. Tuomey officials fought federal authorities for nine years, but lost the lawsuit and was forced to pay $237 million in a retrial. Tuomey later sued the law firm that represented it during the affair.
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