Texas hospital, managers pay $16M to settle 2 false claims suits

In a separate civil case, the medical center concurred to pay a $1.1 million settlement over allegedly submitting false claims to Medicare and Medicaid, the Justice Department stated..

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In the event involving deceptive loans, the Justice Department declared that when requesting a mortgage from the Federal Housing Administration, the defendants made false statements and omissions to overstate doctor assistance and downplay other credit threats. Due to those declarations, the medical facility got the loan under false pretenses, prosecutors stated..

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Baylor Scott & & White acquired the hospital in late 2016 and was not part of the investigation.

In particular, the Justice Department declared the offenders delayed refunds to financiers who took out their financing to make it look like if the hospital had sufficient money on hand to meet home mortgage covenants and close the loan..
The settlement likewise resolves accusations that the accuseds misused job funds in offense of the Federal Housing Administrations requirements..

Lakeway (Texas) Regional Medical Center and its previous managers accepted pay more than $16.4 million to deal with two separate False Claims Act lawsuits, the U.S. Justice Department said Sept. 28..

The $1.1 million settlement resolves claims that the medical center between March 2015 and August 2016 induced physicians to refer clients to the hospital by offering them a financial investment in a joint venture. The Justice Department declares that claims submitted by the medical center to government insurance were unlawful under the federal Anti-Kickback Statute.

The medical center will pay $13.6 million and co-defendants will pay $1.8 million to solve accusations of fraudulently acquiring and misusing federal loans. The co-defendants, Surgical Development Partners, Surgical Development Partners of Austin Enterprises, and G. Edward Alexander, Frank Sossi and John Prater, assisted in the advancement and management of the hospital.

Alia Paavola –
Tuesday, September 29th, 2020
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