Texas hospital pays $48M to settle false claims allegations

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Texas Heart Hospital of the Southwest in Plano, Texas, has agreed to pay $48 million to resolve allegations that it knowingly submitted false claims to Medicare, the U.S. Justice Department said. 

Prosecutors allege that the hospital, which is partially physician-owned, and its subsidiary THHBP Management submitted claims to Medicare that resulted from illegal physician referrals and kickbacks.

In particular, prosecutors said the hospital violated Stark Law and the Anti-Kickback Statute by requiring physician owners to meet a 48 patient-contact requirement to maintain ownership in the hospital.

The allegations were originally brought under the qui tam, or whistleblower, provisions of the False Claims Act by two physician owners, Mitchell Magee, MD, and Todd Dewey, MD. Dr. Dewey and Dr. Magee will collectively receive $13.9 million as their share of the recovery.

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