Baptist Health System Inc. agreed to pay $1.5 million to resolve allegations that it violated the federal False Claims Act by knowingly causing its subsidiaries to offer discounts to patients to induce them to purchase or refer Baptist Health services reimbursed by federal health care programs.
In connection with the settlement, the government acknowledged that Baptist Health took significant steps entitling it to credit for cooperating with the investigation.
The claims resolved by the settlement are allegations only and there has been no determination of liability, states a May 9 news release from the Department of Justice.
“This settlement is a great example of our office’s commitment to protecting and preserving taxpayer-funded health care programs,” U.S. Attorney for the Middle District of Florida Roger Handberg said in the release.
“Self-disclosures like this not only help crucial federal health care programs to recoup funds, but are also in the best interests of health care providers themselves.”
The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully paying or receiving any remuneration in return for referring an individual to, or arranging for the furnishing of, any item or services for which payment is made by federal health care programs.
The government alleged that Baptist Health subsidiaries provided discounts of up to 50% or more on patient cost sharing obligation balances for certain categories of Medicare beneficiaries, chosen by Baptist Health, without regard to any financial need consideration, during the period from Jan. 1, 2016, through Aug. 15, 2022.
The government contends that Baptist Health subsidiaries provided these discounts in exchange for the beneficiaries’ purchase or referral of services by certain categories of Medicare beneficiaries from Baptist Health subsidiaries.
Baptist Health voluntarily self-disclosed the conduct. In addition, Baptist Health cooperated with the government’s investigation and took remedial measures, including discontinuing its discount policy, conducting an internal compliance review and providing a detailed disclosure statement and other supplemental information to assist the investigation.
The release said the resolution was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for the Middle District of Florida; and Department of Health and Human Services’ Office of Inspector General.
Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-447-8477.