Somers Point, N.J.-based Shore Memorial Health System has agreed to pay the U.S. $3.15 million to resolve allegations that it violated the False Claims Act by receiving improper pandemic loans, the Justice Department announced Aug. 14.
The settlement resolves allegations that the system took a loan from the Paycheck Protection Program, which was created in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act, and that the company was not entitled to the loan.
Prosecutors alleged that Shore Memorial Physicians' Group, an affiliate of the health system, applied for and received a PPP loan for $2.78 million, which it was not eligible for because it was affiliated with the system and was therefore not a small business.
Shore Memorial Health System sought and received forgiveness of the total loan amount but has since fully cooperated with the Justice Department's investigation and resolution of the issue, according to the agency.
As part of the settlement, Shore Memorial Health System has agreed to pay the U.S. $3.15 million, with $315,000 of that amount going to the whistleblower who filed the complaint.
Becker's has reached out to the health system and will update this story if a comment is received.