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New York-Based Hospital Operator Pays $4 Million for False Claims Act Violations Relating to Improper Payments to Doctors

By Angela T. Burgess & Neil H. MacBride on September 13, 2017

On September 13, 2017, MediSys Health Network Inc., which operates two hospitals in Queens, New York, settled charges it violated the False Claims Act, agreeing to pay $4 million for submitting claims to the Medicare program for services provided to patients that had been referred by doctors who had improper financial relationships with the company.  MediSys provided compensation and advantageous office lease arrangements to physicians in violation of the Stark Law, which places limitations on financial relationships between hospitals and referring doctors.  A whistleblower, Dr. Satish Deshpande, filed the lawsuit under the qui tam provisions of the FCA, and will recover $600,000 as his share of the full recovery.  United States ex rel. Deshpande, et al. v. The Jamaica Hospital Medical Center, et al., Case No. 13-cv-4030 (E.D.N.Y.).

DOJ Press Release

  • Posted in:
    Administrative, Criminal
  • Organization:
    Davis Polk & Wardwell LLP

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