August 21, 2006
University Hospitals Health System has agreed to pay approximately $14 million to settle allegations that its doctors made improper referrals involving Medicare cases.
The suit was begun as a whistleblower action under the qui tam provisions of the False Claims Act. The whistleblower, a heart surgeon, claimed that the health system entered into improper financial arrangements with physicians to encourage them to make referrals to other doctors within the system.
The Washington Post reported on the settlement on August 18, 2006.