A Plano, Texas-based heart hospital settled allegations its agreement with physician owners violated the False Claims Act, and the whistleblowers making the allegations received millions of dollars.
1. Texas Heart Hospital of the Southwest was accused of violating Stark Law by requiring owners to meet a 48-patient contact requirement to maintain ownership.
2. Former owners Mitchell Magee, MD, and Todd Dewey, MD, sued the hospital, and the federal government played a primary role in discussions that led to the settlement.
3. The hospital and its wholly owned subsidiary THHBP Management Company agreed to pay the U.S. $48 million to settle allegations brought by the lawsuit.
4. The whistleblowers received $13.9 million of the settlement collectively.
"We commend the whistleblowers and their counsel for uncovering this arrangement and pursing the case to a point where defendants and the United States were able to reach a resolution that both protects the taxpayer and ensures patient care free from financial influence,"a news release from the U.S. Attorney for the Eastern District of Texas stated.