A settlement has been reached in a whistleblower class action lawsuit brought against HCA Inc who is accused of violating the False Claims Act and the Stark Statute.
As part of the civil settlement, HCA has agreed to pay $16.5 million to the United States and the state of Tennessee, with the federal portion representing $15,693,000 of the settlement amount. The whistleblower will receive an 18.5 percent share.
The initial whistleblower lawsuit was filed in March 2008. The United States alleged that during 2007, HCA, through its subsidiaries Parkridge Medical Center, located in Chattanooga, TN, and HCA Physician Services (HCAPS), headquartered in Nashville, TN, entered into a series of financial transactions with a physician group, Diagnostic Associates of Chattanooga, through which it provided financial benefits intended to induce the physician members of Diagnostic to refer patients to HCA facilities. These financial transactions included rental payments for office space leased from Diagnostic at a rate well in excess of fair market value in order to assist Diagnostic members to meet their mortgage obligations and a release of Diagnostic members from a separate lease obligation.
