A settlement has been reached in a whistleblower class action lawsuit brought against Adventist Health System/West, dba Adventist Health, and its affiliated hospital White Memorial Medical Center. They are accused of violatins of the False Claims Act.
According to the settlement terms, $11.5 million of the settlement will be paid to the U.S. Government and the remaining $2.6 million will be paid to California’s Department of Health Care Services. The whistleblowers in this case will collectively receive $2,839,219 of the recovery.
The initial whistleblower lawsuit was filed June 2008. The government's complaint alleged Adventist Health improperly compensated physicians who referred patients to the White Memorial facility by transferring assets, including medical and non-medical supplies and inventory, at less than fair market value. Additionally, Defendant White Memorial paid referring physicians compensation that the United States contended was above fair market value to provide teaching services at its family practice residency program. The United States alleged that these payments violated the Anti-Kickback Act and Stark Statute, and by extension, the False Claims Act. Approximately $11.5 million of the settlement will be paid to the U.S. Government, most of which will benefit the Medicare Trust Fund. The remaining $2.6 million will be paid to California’s Department of Health Care Services.
