Under the False Claims Act, the Department of Justice (DoJ) on Friday intervened in the lawsuit against a Florida hospital and its staffing company, accused of violating Stark law. The United States alleges that Halifax Hospital Medical Center and Halifax Staffing Inc. had improper contracts with nine physicians (three neurosurgeons and six medical oncologists) because the physicians' compensation was above fair market value, was not commercially reasonable, or was based on volume of the physicians' referrals, according to a press release.
In July 2009, Halifax Staffing Director of Physician Services Elin Baklid-Kunz initially filed the lawsuit, claiming that the hospital overbilled Medicare by tens of millions of dollars for years and that Halifax had improper financial relationships with the physicians, according to a June Daytona Beach News-Journal article.
Since then, the government has intervened under provisions of the False Claims Act, which allows it to take over the suit, for which it only intervenes on some of the allegations, according to the press release. Under the whistleblower provisions, Baklid-Kunz is eligible to receive a portion of the recovery. According to the article, she could receive up to 15 to 25 percent, which could add up to millions.
"Improper financial arrangements between hospitals and physicians threaten patient safety because personal financial considerations, instead of what's best for the patient, can influence the type of health care that is provided," said Assistant Attorney General for the Civil Division of the Department of Justice Tony West. "The department is committed to preventing kickbacks that can corrupt the integrity of health care delivery."
Cracking down on healthcare fraud, the government has recovered more than $5.9 billion since January 2009 through the False Claims Act, according to the press release.
For more information:
- read the DoJ press release
- read the Daytona Beach News-Journal article
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