Shands HealthCare to Pay Additional $3.25M in Whistle-Blower Case Settlement

Gainesville, Fla.-based Shands HealthCare has agreed to pay an additional $3.25 million to settle allegations six of its facilities violated the False Claims Act by submitting fraudulent claims to Medicare, TRICARE and Medicaid, according to a WTEV report.

The lawsuit against Shands HealthCare was originally filed in 2008 under the qui tam, or whistle-blower provision, of the False Claims Act. The whistle-blower was Terry Myers, president of Corydon, Ind.-based YPRO — a healthcare consulting firm — who filed the lawsuit after performing an audit of Shands HealthCare's hospital in 2006.

In August, 2013, Shands agreed to pay $26.2 million in the case, and the additional $3.25 million will resolve the remaining False Claims Act allegations made against the health system.  

Although the healthcare system agreed to the settlement it did not admit liability in the case.

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