Adventist Health System, which operates hospitals in four states, has agreed to pay $14.1 million to settle allegations that it offered improper benefits to physicians who referred patients to its hospitals. Those benefits, the government alleges, included selling doctors discounted medical supplies and paying above-market compensation for physicians teaching in the company’s family practice residency program. The government argued that this alleged quid-pro-quo violated the federal Anti-Kickback Act and the False Claims Act. In addition to paying roughly $11.5 million to the United States and $2.6 million to California’s Department of Healthcare Services, Adventist will enter into a five-year Corporate Integrity Agreement intended to prevent future violations.

Like many False Claims Act cases, the suit against Adventist began as a qui tam action brought by several whistleblowers with direct knowledge of the alleged kickbacks. The whistleblowers will collectively receive $2,839,219 of the settlement as a reward for their efforts.

Read the entire press release, “Adventist Health Pays United States and State of California $14.1 Million to Resolve False Claims Act Allegations”