West Virginia hospital settles whistleblower suit for $50M

Wheeling (W.Va.) Hospital has agreed to pay $50 million to resolve allegations that it violated the False Claims Act by submitting claims to Medicare that resulted from violations of Stark Law and the Anti-Kickback Statute, according to the Department of Justice

The settlement resolves allegations that the hospital's former CEO, Ronald Violi, and its business consulting group knowingly paid improper compensation to referring physicians that was based on the volume of the physicians' referrals or was above fair market value, according to the Justice Department. 

The settlement stems from a whistleblower complaint filed in 2017 by Louis Longo, a former executive vice president of the hospital. Mr. Longo will receive $10 million of the $50 million settlement. 

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