Shands Healthcare of Florida Settles $26 Million False Claims Act Allegations

Shands Teaching Hospital & Clinics Inc., Shands Jacksonville Medical Center Inc., and Shands Jacksonville Healthcare Inc. (Shands Healthcare), which operate a network of health care providers in Florida has entered an agreement with the government to settle allegations that six of the Shands Healthcare’s hospitals submitted false claims to Medicare, Medicaid and other federal health care programs for inpatient procedures that should have been billed as outpatient services.

The government alleged that the six hospitals – Shands at Jacksonville; Shands at Gainesville, Shands Alachua General Hosptial; Shands at Lakeshore; Shands Starke and Shands Live Oak – knowingly submitted inpatient claims, from 2003 through 2006, to Medicare, Medicaid and TRICARE for services and procedures the hospitals knew were supposed to be billed as outpatient services or procedures.

Terry Myers, the president of the helathcare consulting firm YPRO Corp. filed the underlying qui tam lawsuit in the federal district court in Jacksonville, Florida.  The government and Shands Healthcare settled the allegations raised in the qui tam lawsuit for $26 million of which $25,170,400 will be reimbursed to Medicare and the other federal health care programs.  The State of Florida will recieve $829,600.  Mr. Myers’ share of the settlement as a whistleblower under the Federal False Claims Act has yet to be decided.

Posted in False Claims, Federal False Claims Act, Healthcare Fraud, Qui Tam, Settlements, Whistleblower LawsuitNo Comments

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