The settlement resolves allegations that the firm knowingly submitted inflated claims to federal health programs between 2004 and 2012.
Sound Physicians employs more than 700 hospitalists and post-acute physicians who provide services at 70 hospitals and numerous post-acute facilities in 22 states, according to the report.
The case stems from a whistleblower lawsuit filed by a former Sound Physicians employee, who will receive $2.7 million of the settlement.
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