Buffalo, N.Y.-based Catholic Health System agreed to pay more than $3.29 million to settle allegations that it submitted false Medicare claims in violation of the Stark law, the Justice Department said in a May 16 news release.
What happened?
- According to the Justice Department, Catholic Health System had improper financial arrangements with non-employee physicians who referred services to CHS, which then billed Medicare for those services.
- The Justice Department said these compensation agreements did not meet Stark law exceptions because they were either not commercially reasonable or exceeded fair market value.
- The settlement resolves claims brought by whistleblower Gary Tucker under the False Claims Act’s qui tam provisions, allowing him to share in the recovery.
In a statement to WGRZ 2, Leonardo Sette-Camara, general counsel of Catholic Health, said: “Defending these types of subjective allegations requires an unsustainable and unacceptable allocation of Catholic Health resources…” he said. “This investigation was never about the quality of care provided to our patients. By resolving the case now, we can move forward and remain fully focused on delivering the highest standard of care.”
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