A settlement has been reached to resolve False Claims Act allegations against Pine Creek Medical Center LLC.
The allegations arose from a lawsuit that claimed Pine Creek Medical Center LLC violated the False Claims Act by paying physicians kickbacks in the form of marketing services in exchange for surgical referrals.
According to the government, allegedly Pine Creek was involved in an illegal kickback scheme between 2009 and 2014 that involved the hospital paying for physicians' marketing and advertising services in exchange for patient referrals. Allegedly, Pine Creek paid for print, radio and television ads on behalf of physicians.
“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Improper financial incentives can distort medical decision making and drive up healthcare costs for federal health care programs and their beneficiaries.”
As part of the settlement, Pine Creek has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General, which obligates the defendants to undertake substantial internal compliance reforms for the next five years.
The whistleblowers, Suzanne Scott and Savannah Sogar, former employees of Pine Creek’s marketing department, will receive $1,125,000.
