District courts in Georgia and Florida unsealed the four civil actions, and Health Management disclosed the actions in a Dec. 16 report.
The False Claims Act’s qui tam provisions allow private citizens, or relators, to file suits alleging false claims on behalf of the government. If the plaintiff or government prevails in the action, the whistleblower then receives a portion of the recovery.
Two allege actions certain Health Management hospitals inappropriately admitted patients, then submitted claims for treating those individuals to federal healthcare programs, violating the False Claims Act.
Two other actions allege that certain Health Management hospitals had inappropriate financial relationships with physicians that violated Stark Law and the Anti-Kickback Statute, thereby violating the FCA.
Health Management has also been advised that the federal government will elect to intervene in four additional qui tam cases against the hospital operator.
Health Management is in the midst of a change in ownership. In July, Franklin, Tenn.-based Community Health Systems announced it will acquire Health Management in a deal valued at $7.6 billion. The transaction is still undergoing final regulatory review and is expected to close in the first quarter of 2014.
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