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Major health systems pay millions in fraud settlements

Health 01 May 2017
Major health systems pay millions in fraud settlements

Government & Policy

Major health systems pay millions in fraud settlements

Partners and Indiana University have reached multimillion dollar settlements with the DOJ over allegedly fraudulent grant funding, False Claims Act violations.

Brigham and Women’s Hospital “has made significant enhancements to research integrity compliance protocols as a result of this event,” a hospital spokesperson told the Boston Business Journal.

Two health systems have reached settlements with the U.S. Department of Justice regarding lawsuits over allegedly fraudulent grant funding and alleged violations of the False Claims Act.

Partners Healthcare will pay $10 million over a grant funding lawsuit tied to its Brigham and Women’s Hospital. In this case, a stem cell research lab operated by Piero Anversa, MD, allegedly submitted falsified data to procure grants from the National Institutes of Health.

“Individuals and institutions that receive research funding from NIH have an obligation to conduct their research honestly and not to alter results to conform with unproven hypotheses,” said acting U.S. attorney William D. Weinreb in a statement. Weinrub went on to laud Brigham and Women’s Hospital for reporting the fraud itself.

[Also: NantHealth's Patrick Soon-Shiong sued for alleged securities violations]

Brigham and Women’s Hospital “has made significant enhancements to research integrity compliance protocols as a result of this event,” a hospital spokesperson told the Boston Business Journal.

In the other case, Indiana University Health and HealthNet have agreed to pay $18 million in a civil settlement over alleged violations of the False Claims Act. In this case, a whistleblower filed a federal lawsuit claiming the two organizations violated anti-kickback laws by fraudulently billing Medicaid for services provided by nurse midwives that the organizations said were provided by physicians.

Indiana University Health and HealthNet did not admit any wrongdoing per the settlement, the Indianapolis Business Journal reported. The two organizations said they settled to circumvent protracted litigation.

Twitter: @SiwickiHealthIT
Email the writer: bill.siwicki@himssmedia.com

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