• About John Howley
JOHN HOWLEY, ESQ.
  • About John Howley

$20.8 Million Whistleblower Reward in Hospital Qui Tam Case

3/12/2014

0 Comments

 
Hospital Settles Medicare Fraud Claims Based on Stark Law Violations

Halifax Hospital Medical Center and an affiliate will pay $85 million to settle claims that they submitted false claims to Medicare for services that violated the physician self-referral provisions of the Stark Law.

The Stark Law prohibits hospitals from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital.  The financial relationship may take the form of salaries, benefits, consulting contracts, or below-market office space.

The whistleblower complaint in this case alleged that contracts between Halifax and six medical oncologists violated the prohibition on physician self-referrals in the Stark Law.  Specifically, the contracts provided an incentive bonus based on the value of prescription drugs and tests that the oncologists ordered and the hospital then billed to Medicare. 

The complaint also alleged that the hospital violated the Stark Law by paying three neurosurgeons who referred patients to the hospital more than the fair market value of their services.

The settlement resolves a whistleblower lawsuit brought by a former hospital employee under the qui tam or whistleblower provisions of the False Claims Act.  The qui tam provisions allow an individual citizen to file a lawsuit “under seal” (in secret) on behalf of the government and share in the amount the government recovers.  After investigating the claims, the government may choose to take over the lawsuit or allow the whistleblower to proceed on its behalf.

The whistleblower in this case, Elin Baklid-Kunz, will receive a $20.8 million reward for helping the government uncover the fraud and prove the allegations.

Qui tam or whistleblower lawsuits are different from ordinary lawsuits in several respects.  The procedures for filing the lawsuit and disclosing evidence to the government must be followed correctly or the case will be dismissed.  In addition, the whistleblower must produce evidence of the false claims, not merely allegations, at the very beginning of the lawsuit.

If you have evidence that a hospital is violating the Stark Law or making other types of false claims to Medicare or Medicaid, then you should consult with an experienced whistleblower lawyer immediately to protect your rights.  You may be entitled to a substantial reward and other whistleblower protections if you prepare your case properly.

To arrange a free and confidential consultation with an experienced whistleblower attorney, call John Howley, Esq. at (212) 601-2728 or click here to reach our office via email.

John Howley, Esq.


The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation.  I invite you to contact our law offices and welcome your calls, letters and electronic mail.  Contacting us does not create an attorney-client relationship.  Please do not send any confidential information to us until such time as an attorney-client relationship has been established.  I practice law and offer legal services only in jurisdictions where I am properly authorized to do so.  I do not seek to represent anyone in any jurisdiction where this web site does not comply with applicable laws and bar rules.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Picture
    John Howley, Esq.
    350 Fifth Avenue 59FL
    New York, NY 10118
    (212) 601-2728

    Employment Law

    Healthcare Fraud

    Whistleblower Rewards
Get an Experienced Advocate On Your Side​
John Howley is available to consult with potential clients by telephone, video-conference, or in person.  All consultations are by appointment.  To schedule a consultation, call our offices today at (212) 601-2728.
Click to Call


​Follow John Howley, Esq.

Follow John Howley, Esq. on social media for the latest legal news and updates.



​John Howley, Esq. | 1345 6th Ave 2nd floor | New York, NY 10105 | (212) 601-2728
​
​Copyright (c) 2012-2023 by John Howley, Esq.  This web site is for educational purposes only,  It does not provide legal advice, nor does it solicit clients seeking legal advice or representation.  To the extent it may be considered attorney advertising, readers are cautioned that prior results do not guarantee a similar outcome.
  • About John Howley