Jackson Walker Scores $23.5 Million Settlement in DOJ Health Care Fraud Case

A South Texas hospital has agreed to end a lawsuit with the U.S. Department Justice by paying a $23.5 million settlement to the government and the three whistleblowers who brought the litigation several years ago.

Within 10 days, Victoria-based Citizens Medical Center must pay $21.75 million to the DOJ and nearly $6 million to the three cardiologist whistleblowers, who claimed in 2010 that the hospital violated the False Claims Act by compensating several cardiologists in excess of the fair market value of their services and illegally paid bonuses to emergency room physicians for their referrals to the hospital.