The Department of Justice has filed a legal complaint against two medical centers for Stark law violations and submitting false Medicare claims, according to a July 26 news release.
The complaints –– filed against Murphy (N.C) Medical Center , doing business as Erlanger Western Carolina Hospital and Chattanooga-Hamilton County (Tenn.) Hospital Authority doing business as Erlanger Health System and Medical Center –– allege that Erlanger employed and received referrals from physicians that did not meet any Stark law exceptions, amounting to a kickback scheme. Erlander is also alleged to have submitted false Medicare and Medicaid claims.
The initial accusation of the scheme was made by two former executives in 2021. The 2021 complaint was filed by former CFO J. Britton Tabor and former chief compliance officer Alana Sullivan, who were let go in 2019 and 2021, respectively.
The government's complaint was filed in a lawsuit originally filed under the whistleblower provisions of the False Claims Act, which allows private parties to sue on behalf of the U.S. for false claims and to share any finances recovered.