A settlement has been reached in a whistleblower class action lawsuit brought against All Children's Health System Inc who is accused of submitting claims to Medicaid that were illegal under the Stark Law.
The federal government will receive $4 million and the State of Florida will receive $3 million from the settlement. The whistleblower will receive a $1.9 million share of the state and federal settlement amounts.
Filed in July of 2011, the whistleblower case alleged that All Children's Health System Inc paid inflated salaries and bonuses to doctors to ensure that referrals and extra procedures stayed at All Children’s Hospital and that, as a result, their submissions for Medicaid reimbursement were fraudulent in violation of the False Claims Act.