6-Year-Old Whistleblower Suit Against IASIS Healthcare Alleging Kickbacks is Dismissed

A whistleblower's complaint against Franklin, Tenn.-based IASIS Healthcare, which claimed the 19-hospital system paid kickbacks in exchange for referrals,  has been dismissed by a federal judge in Arizona, according to a Nashville Business Journal report.

U.S. District Judge Robert Clive Jones rejected the complaint from Jerre Frazier, former vice president of ethics and compliance for IASIS. Mr. Frazier filed the complaint in March 2005, claiming the system performed unnecessary medical procedures and illegally paid physicians for patient referrals to pad profits.

In Jan. 2011, IASIS filed a motion to dismiss Frazier's complaint and also filed a renewed motion for sanctions concerning Mr. Frazier's "misappropriation and misuse of privileged documents," according to a system news release. The system said the court's order in favor of IASIS "should effectively bring to an end" Mr. Frazier's qui tam litigation, according to the release.

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