◆ The Department of Justice (DOJ) said Jan. 7 it has filed a False Claims Act[1] lawsuit[2] against Community Health Network, an integrated health care system in central Indiana, alleging it violated the Stark Law.[3] DOJ alleges Community Health Network has compensation relationships with some physicians that are above fair market value and that the health system paid bonuses if the physicians met a minimum target of referral revenues. The complaint was set in motion by a whistleblower. The health system told the IndyStar newspaper it denied wrongdoing.
◆ The Department of Justice said Jan. 9 it had recovered $3 billion in False Claims Act settlements and judgments—$2.6 billion of it from health care cases—during fiscal year 2019.[4] DOJ settled a number of large-dollar health care cases. For example, Encompass Health Corp., previously known as HealthSouth Corp., paid $48 million to settle allegations that some of its inpatient rehabilitation facilities provided incorrect information to Medicare to keep their inpatient rehabilitation facility (IRF) status and to earn a higher reimbursement rate, and that some IRF admissions were medically unnecessary.