Third False Claims Act Settlement for Medically Unnecessary Stent and Cardiac Procedures at Tennessee Hospitals
PHILADELPHIA, July 10, 2015 /PRNewswire/ — In a False Claims Act case in which the United States declined to intervene, Berger Montague announces that Regional Hospital of Jackson, Tennessee, has agreed to pay $510,000 to resolve claims arising from medically unnecessary stent and other cardiac procedures performed by one of its interventional cardiologists. The United States had intervened in claims against the cardiologist, which settled in late 2013 for $1,150,000. The total amount recovered in the litigation was just under $3 million.
On June 13, 2007, Relator filed a qui tam action in the United States District Court for the Western District of Tennessee captioned United States of America ex rel. Wood M Deming v. Jackson Madison County General Hospital; Regional Hospital of Jackson, et al., No. 07-cv-01116-AJT-egb, pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. § 3730(b). Relator alleged that the defendants submitted or caused the submission of false or fraudulent claims to the Medicare Program and the Tennessee Medicaid Program for medically unnecessary diagnostic and therapeutic cardiology procedures.
The Relator will receive a 27% relator share out of the proceeds of the settlement, pursuant to the False Claims Act’s relator share provisions. Relator’s counsel will also seek attorney’s fees from the hospital.
Susan Schneider Thomas