Adventist Health to Pay $14M to Resolve False Claims Allegations

Roseville, Calif.-based Adventist Health and its White Memorial Medical Center in Los Angeles have agreed to pay $14.1 million to resolve allegations they violated the False Claims Act.

The settlement with the federal government and state of California resolves allegations that Adventist improperly paid physicians who referred patients to White Memorial by transferring assets at less than fair market value. Those assets allegedly included medical and nonmedical supplies and inventory.

White Memorial also allegedly paid referring physicians compensation that the United States contended was above fair market value to provide teaching services at its family practice residency program.

Approximately $11.5 million of the settlement will be paid to the federal government, most of which will benefit the Medicare Trust Fund. The remaining $2.6 million will be paid to California’s Department of Health Care Services.

More Articles on Hospitals and Settlements:

2 Montana Hospitals to Pay $3.95M for Alleged Stark Law Violations
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DOJ, 8 Healthcare Providers Reach Settlements for Alleged ADA Violations

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