Montana hospital pays $24M to settle ex-CFO's whistle-blower suit

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Kalispell (Mont.) Regional Healthcare System and six subsidiaries and related entities agreed to pay the federal government $24 million to resolve allegations they violated the False Claims Act, Stark Law and the Anti-Kickback Statute, according to the Department of Justice.

The health system allegedly violated Stark Law by paying excessive compensation to more than 60 physician specialists between 2010 and 2018. Several KRHS-related entities allegedly conspired to violate the Anti-Kickback Statute by paying excessive compensation to physicians to induce referrals and providing administrative services at below fair market value.

The allegations against KRHS were originally brought in two lawsuits filed by Jon Mohatt, the former CFO of the system's physician network, under the qui tam, or whistle-blower, provisions of the False Claims Act. Mr. Mohatt will receive $5.4 million as his share of the recovery in the two consolidated cases.

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