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False Claims Act Settlement for Medically Unnecessary Stent and Cardiac Procedures

Posted: May 7, 2015
Outcome: Settlement
Practice Areas: Whistleblowers, Qui Tam & False Claims Act

Berger & Montague, P.C. Announces False Claims Act Settlement for Medically Unnecessary Stent and Cardiac Procedures

PHILADELPHIA, PA, May 7, 2015 -- In a False Claims Act case in which the United States declined to intervene, Berger & Montague announces  that Jackson-Madison County General Hospital of Jackson, Tennessee, has agreed to pay $1,328,465 to resolve claims arising from medically unnecessary stent and other cardiac procedures performed by one of its interventional cardiologists.  The United States had intervened in claims against the cardiologist, which settled in late 2013 for $1,150,000.  The litigation is continuing against Regional Hospital of Jackson, another hospital at which the cardiologist performed interventional procedures.

On June 13, 2007, Relator filed a qui tam action in the United States District Court for the Western District of Tennessee captioned United States of Americ a ex rel. Wood M Deming v. Jackson Madison County General Hospital, an Affiliate of West Tennessee Healthcare; Regional Hospital of Jackson, a Division of Community Health System s Professional Svcs. Corp.; James Moss, individually; Timothy Puthoff,' individually; Joel Perchik, MD. , individually; and Elie H. Korban, MD., individually, No. 07-cv-01116-AJT-egb, pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. § 3730(b). Relator alleged that the defendants submitted or caused the submission of false or fraudulent claims to the Medicare Program and the Tennessee Medicaid Program for medically unnecessary diagnostic and therapeutic cardiology procedures.

In addition to the settlement amount, Jackson Madison County General Hospital paid statutory attorney's fees and costs to Relator's counsel.  Relator received $358,685.55 out of the proceeds of the Jackson Madison settlement, pursuant to the False Claims Act's relator share provisions.