SC hospital to pay $36.5 million to settle alleged kickback scheme, does not admit guilt
Bon Secours St. Francis healthcare system has agreed to pay $36.5 million to resolve a lawsuit that alleged illegal bonuses were paid to orthopedic surgeons based on the amount and value of referrals to the Greenville hospital.
“Medical providers should base health care decisions on what is best for the patient, and not on financial incentives and related schemes,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina.
Erica Blake, spokesperson for the healthcare system, released a statement disputing the allegations made about the physician employment arrangement, which ended five years ago.
“Reaching a settlement enables us to place our focus where it belongs – continuing to compassionately serve patients and communities by providing the high-quality, Mission-centric care that our community has come to expect without the disruption this kind of litigation can pose,” she said.
The lawsuit came about after a whistleblower filed a lawsuit alleging knowledge of a kickback scheme. That person, who was not named, will receive $10.2 million of the settlement amount, the U.S, Attorney’s Office said in a news release.
“We are grateful the relator brought these allegations forward. Relators are critical to identifying fraud and protecting the integrity of our Medicare system,” Boroughs said.
The lawsuit alleged the Greenville healthcare system violated the False Claims Act, the Federal Stark Law, and the Federal Anti-Kickback Statute.
“The settlement resolves allegations that St. Francis caused the submission of false claims to Medicare and to TRICARE as a result of an unlawful contractual payment structure between St. Francis and Piedmont Orthopedic Associates.
The whistleblower was represented by Bill Nettles and Fran Trapp of the Law Offices of Bill Nettles, and Bryan Vroon of the Law Offices of Bryan A. Vroon, LLC.
