A settlement has been reached to resolve False Claims Act allegations against MedStar Health.
The allegations arose from a lawsuit that claimed MedStar Health Inc, MedStar Union Memorial Hospital, and MedStar Franklin Square Medical Center paid illegal kickbacks to a cardiology group in exchange for patient referrals.
According to the government, between 2006 and 2011, MedStar paid MidAtlantic Cardiovascular Associates (MACVA) kickbacks under the guise of professional services contracts for its referrals to MedStar Union Memorial of lucrative cardiovascular procedures. In addition, MedStar greed to settle allegations that it received Medicare payments between 2006 and 2012 for medically unnecessary stents performed by John Wang, M.D., a one-time employee of MACVA who was later employed by MedStar.
“Kickbacks made in connection with the provision of medical services undermine the integrity of our health care system,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will take action against medical service providers who through unlawful conduct put their own financial interests ahead of the best interests of patients.”
“Patients rightly expect their doctors will make recommendations based on sound medical practice – not payoffs that too often result in needless and sometimes even harmful procedures,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to protect patients and taxpayer-funded government health programs from these unnecessary services, as the government contended in this case.”
The Whistleblowers, will receive a portion of the federal share of the recovery.
