Texas surgical hospital settles Stark Law violation allegations, whistleblowers get $13.9M

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.

Four details:

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.

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