Christiana Care Health System (“CCHS”), Delaware’s largest health care provider, will pay the United States and the State of Delaware a total of $3.3 million to settle allegations that CCHS violated federal and state False Claims Acts.

The lawsuit alleged CCHS submitted false claims to Medicare and Medicaid by asserting its compliance with all federal and state laws and regulations when in actuality CCHS had a fraudulent financial relationship with a group of Wilmington, Delaware neurologists who, in violation of federal and state law, referred patients to CCHS.

Allegedly, CCHS violated the federal Physician Self-Referral Statue (also known as the Stark Statute) and the Delaware Anti-Kickback Statute by paying the group of neurologists fees for services provided that were significantly higher than what Medicare and Medicaid paid CCHS as reimbursement for those services. 

The lawsuit was filed by two Wilmington, Delaware neurologists as part of a qui tam lawsuit under federal and state False Claims Acts.