North Dakota clinic paid $5.5M to settle allegedly illegal ASC arrangement

Angie Stewart - Print  |

Bismarck, N.D.-based Mid Dakota Clinic settled allegations that a financial arrangement with its wholly owned ASC violated the Anti-Kickback Statute, according to an Oct. 9 case summary.

Law firm Constantine Cannon filed the whistleblower suit in 2017 on behalf of Jeffrey Neuberger, Mid Dakota Clinic's former CEO.

In Jeffrey Neuberger v. Mid Dakota Clinic, Mr. Neuberger alleged that all of Mid Dakota Clinic's physicians could make or influence referrals to the ASC, and despite knowing this arrangement was illegal, the clinic collected revenues from those referrals.

Mid Dakota Clinic, along with its related real estate business and insurer, agreed in November 2019 to resolve the case for $4.15 million. Mr. Neuberger was awarded a portion of Mid Dakota Clinic's settlement with the federal government, as well as $1.3 million to cover legal expenses.

The parties agreed in January 2020 to dismiss the case.

To read more about the case, click here and here.

More articles on surgery centers:
The 3 things facilities should do now to prepare for the 2021 CMS Physician Fee Schedule
6 must-know coding updates in 2020
Blue Cross North Carolina, Wake Forest collaborate on new insurance network

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.