Georgia health system to pay $9.8M to settle ex-CEO's allegations

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Savannah, Ga.-based Memorial Health, the parent corporation of Memorial Health University Medical Center, Provident Health Services, and Memorial Health University Physicians, has inked a $9.8 million settlement to resolve False Claims Act and Stark Law allegations, according to the Department of Justice.

The settlement resolves allegations that were part of a federal qui tam lawsuit filed by Phillip Schaengold, Memorial Health's former president and CEO, according to a Savannah Morning News report. Mr. Schaengold was dismissed from his post at Memorial Health in January 2011.

The allegations brought by Mr. Schaengold related to specific physician employment agreements from 2008 to 2010. The lawsuit specifically alleged Memorial Health recruited a three-physician internal medicine group and compensated the physicians in excess of market benchmarks.

Although Memorial Health has agreed to this settlement, there has been no determination of wrongdoing in this case.

More articles on healthcare lawsuits:

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