$7 Million Settlement in Hospital Whistleblower Case

James Hoyer whistleblower attorneys were lead counsel in the $7 million settlement of a whistleblower lawsuit against a Florida hospital.  The defendants agreed to settle allegations that their compensation agreements with certain employed physicians did not comply with federal law.

A former employee of the facility filed the federal False Claims Act suit in Tampa in July of 2011.  The employee alleged that certain physician compensation agreements between the defendants and employed physicians did not comply with the federal Stark statute, which regulates the financial relationships between hospitals and their referring physicians.  Federal law requires hospitals to comply with the Stark statute in order to participate in the Medicaid and Medicare programs.

In order to settle the lawsuit’s allegations, the defendants will pay the United States approximately $4 million and the State of Florida approximately $3 million.

The False Claims Act allows private citizens to bring civil actions on behalf of the government.  Under the False Claims Act, a whistleblower can receive a portion of the money recovered.  In this case, the whistleblower received a 26.5% share of the recovery.

The James Hoyer whistleblower law firm specializes in whistleblower litigation. It was founded by former federal prosecutors who are experts in the business of fighting fraud against the government.

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