The Justice Department claimed UT violated the False Claims Act by using a third-party foundation as a conduit to pay copays for thousands of Medicare patients taking UT’s hypertension drugs.
Specifically, the government alleged UT made donations to the foundation — which claimed nonprofit status — from 2010 to 2014. The foundation took those donations and paid for copays to steer patients toward the drugs, the DOJ alleged. The DOJ also claimed UT regularly received data from the foundation about how much the third party spent on copays. UT, in turn, used this data to decide how much to donate to the foundation, the government claims.
In addition the settlement, UT entered into a five-year corporate integrity agreement with HHS’ Office of Inspector General. The agreement requires UT to ensure third-party relations are compliant with law.
More articles on legal and regulatory issues:
2 physician groups will pay $33M to settle kickback allegations: 6 things to know
DOJ: Man treated nearly 2 dozen patients while posing as physician in Virginia
Cooper University Health sues Trinity division for $15M over failed hospital deal
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
