March 24, 2004 Tenet Healthcare Corporation
Tenet Healthcare Corporation has agreed to pay $22.5 Million Dollars to settle a qui tam action filed by one of its former executives, Sal Barbera. The allegations within the action were that one of Tenet’s facilities improperly billed Medicare for millions of dollars for referrals provided by doctors with whom the hospital had illegal financial arrangements, which violated The Stark Statute. The Stark Statute prohibits hospitals from billing Medicare for services rendered to patients by doctors with whom the hospital has a financial relationship, unless the financial relationship falls within specified exceptions.
Mr. Barbera is to receive a share of the $22.5 Million Dollar settlement for having filed the qui tam case.
See U.S. Dept of Justice Press Release 3/24/04