The settlement stems from a whistleblower suit filed by a plastic surgeon who formerly practiced in Ithaca. The physician claimed Cayuga recruited physicians to the area through agreements that violated Stark Law by allegedly paying for expenses that are not permitted.
The qui tam suit also alleged that Cayuga violated the False Claims Act by submitting claims to Medicare and Medicaid when it was not in compliance with Stark Law.
The whistleblower, Daniel Jorgenson, MD, will receive 18 percent of the settlement —roughly $567,000.
Related Articles on Hospitals and Settlements:
Georgia’s Satilla Regional Pays $840k to Resolve Allegations of Unnecessary Care
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