Nursing home to pay $17M to settle kickback allegations brought by former CFO

Miami-based Plaza Health Network, formerly Hebrew Homes Health Network, has agreed to pay the federal government a record $17 million to settle allegations it violated the Anti-Kickback Statute.

The settlement resolves the government's claims that Hebrew Homes operated a kickback scheme from 2006 through 2013. The government specifically alleged the scheme involved Hebrew homes hiring numerous physicians for "ghost positions" as medical directors. The physicians did not perform their contracted job duties and were not paid for those duties. Rather, they were paid for patient referrals to Hebrew Homes' facilities, according to the Department of Justice.

Along with paying the monetary settlement, Hebrew Homes has also entered into a five-year corporate integrity agreement with HHS' Office of Inspector General. The president and executive director of Hebrew Homes, William Zubkoff, has also agreed to resign.

Stephen Beaujon, a former CFO of the company, originally brought the claims against Hebrew Homes under the qui tam, or whistle-blower, provision of the False Claims Act.

Although Hebrew Homes has agreed to this settlement, there has been no determination of liability in this matter.

More articles on healthcare industry lawsuits:

Ex-UPMC supervisor indicted in fraud case
Ex-president of Texas hospital sentenced to 45 years in prison
Criminal investigation of Tenet hospitals: 5 things to know

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