A Plano, Texas-based heart hospital settled allegations its agreement with physician owners violated the False Claims Act, and the whistleblowers making the allegations received millions of dollars.
Four details:
1. Texas Heart Hospital of the Southwest was accused of violating Stark Law by requiring owners to meet a 48-patient contact requirement to maintain ownership.
2. Former owners Mitchell Magee, MD, and Todd Dewey, MD, sued the hospital, and the federal government played a primary role in discussions that led to the settlement.
3. The hospital and its wholly owned subsidiary THHBP Management Company agreed to pay the U.S. $48 million to settle allegations brought by the lawsuit.
4. The whistleblowers received $13.9 million of the settlement collectively.
"We commend the whistleblowers and their counsel for uncovering this arrangement and pursing the case to a point where defendants and the United States were able to reach a resolution that both protects the taxpayer and ensures patient care free from financial influence,"a news release from the U.S. Attorney for the Eastern District of Texas stated.