9 latest healthcare industry lawsuits, settlements

From Sanford Health agreeing to pay $20 million to settle a false claims lawsuit to a judge refusing to sign off on a deal requiring Dignity Health to pay $100 million, here are the latest healthcare industry lawsuits and settlements making headlines.

1. Former executive of Cleveland Clinic spinoff defrauded system of $2.7M
The former chief technology officer of Interactive Visual Health Records, a company formed by Cleveland Clinic Innovations, was sentenced to nearly five years in prison Oct. 30 for his role in a conspiracy to defraud Cleveland Clinic of more than $2.7 million.

2. Outcome Health agrees to pay $70M to victims of fraud scheme
Outcome Health reached a non-prosecution agreement with the U.S. Department of Justice in which the health technology startup will pay $70 million to victims of a fraud scheme perpetrated by former employees, including the company's two co-founders.

3. Dignity Health's $100M class-action settlement is unreasonable, judge says
A California federal judge refused to approve a deal requiring Dignity Health to pay more than $100 million to settle a class-action lawsuit accusing the San Francisco-based health system of using a religious Employee Income Retirement Security Act exemption it wasn't entitled to.

4. Sanford Health will pay $20M to settle false claims lawsuit
Sioux Falls, S.D.-based Sanford Health agreed to pay $20.25 million to settle False Claims Act allegations originally brought in a whistleblower lawsuit filed in 2016.

5. Federal court approves Quest Diagnostics' $195K data breach settlement
A federal court granted approval Oct. 25 to Quest Diagnostics to settle a class-action lawsuit that stemmed from a 2016 data breach for $195,000.

6. Arizona health centers sue Medicaid for unpaid services
Arizona health centers are accusing the state's Medicaid program of not reimbursing them for their full costs of all provided services.

7. Missouri hospital's ex-CEO pleads guilty to $114M billing scheme
The former CEO of Unionville, Mo.-based Putnam County Memorial Hospital pleaded guilty Oct. 29 to a $114 million fraudulent billing scheme.

8. Iowa physician accused of filing 89 fraudulent Medicare, Medicaid claims
A plastic surgeon who practiced in Michigan and now works in Iowa is being accused of criminal healthcare fraud and filing false claims.

9. 15 drugmakers to pay $242M to settle Illinois Medicaid fraud suit
Fifteen drugmakers will pay the state of Illinois $242 million to settle allegations they published inflated average wholesale price information to increase Medicaid reimbursements.

More articles on legal and regulatory issues:

Medicare fraud — not just a financial crime, study finds
Insurance executive gets prison time for defrauding Pennsylvania hospitals
Ex-chief of staff's lawsuit delays $361M Kentucky hospital sale

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