A Texas hospital group will pay the United States $27.5 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute between 1999 and 2006. The McAllen, Texas group allegedly paid illegal kickbacks to doctors in order to convince them to refer patients to hospitals within the group.

The government alleges that a series of sham contracts were created to disguise the payments.

The settlement resolves a qui tam or whistleblower lawsuit filed in 2005 by Bruce Moilan, a former employee of the defendants, who will receive $5.5 million for his participation.

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