IU Health hit with $100M false claims lawsuit: 5 things to know

Indianapolis-based IU Health is facing a False Claims Act lawsuit alleging it engaged in a fraud scheme that put low-income pregnant woman and their newborn babies at risk, according to an Indianapolis Business Journal report.

Here are five things to know about the lawsuit.

1. The lawsuit, which was recently unsealed by the government, alleges IU Health used midwives to provide care to low-income pregnant woman instead of having them treated by higher-cost physicians. The lawsuit claims the healthcare provider would then bill Medicaid as if physicians provided the services.

2. HealtNet, the largest provider of midwifery services in Indiana, and MDWise, a Medicaid claims processor, are also named in the lawsuit.

3. The lawsuit was filed in December 2013 under the qui tam, or whistle-blower, provision of the False Claims Act by Judith Robinson, MD, who formerly served as director of women's services at HealthNet and as medical director of OB-GYN services at IU Health.

4. When Ms. Robinson learned of instances of babies having permanent neurological issues because of the subpar care they were provided, she alerted IU Health executives, according to the report. Ms. Robinson was fired four months after bringing the issue to light. Ms. Robinson told WTHR she is now suing IU Health for wrongful termination.

5. "The most egregious part is that these babies and their mothers suffered and didn't need to," Ms. Robinson told WTHR.

IU Health declined to comment on the pending litigation, according to the Indianapolis Business Journal.

More articles on healthcare industry lawsuits:

9 latest healthcare industry lawsuits
Dr. Tariq Mahmood sentenced for healthcare fraud scheme
State-level false claims developments: 4 things to know

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