June 26, 2003  Largest Health Care Fraud in History

HCA Inc. has agreed to pay $631 Million Dollars to settle nine qui tam actions. The allegations of the suits were that HCA engaged in a series of schemes to defraud Medicare, Medicaid and TRICARE, the military’s health care program.  Under the terms of the settlement, the individuals who filed the qui tam cases are to receive over $151 Million Dollars, the highest qui tam award ever paid out by the government.

Two relators who filed qui tam actions asserting cost reporting fraud allegations, James Alderson and John Schilling, are to collectively receive $100 Million Dollars as their share of the settlement.

Other relators who filed qui tam suits which were involved in the settlement included: Dr. James Thompson, who will receive $41.5 Million Dollars as his share of the settlement; Gary King, a former HCA employee who will receive $5 Million Dollars as his share; Ann Mroz, a former HCA nurse who will receive $837,500 as her share; Joseph “Mickey” Parslow, a former HCA financial officer, who will receive over $2.9 Million Dollars; Francesco Lanni, a former reimbursement manager, who will receive $680,000; and Michael Marine who will receive a share of $116,500.

See U.S. Dept of Justice Press Release 6/26/03

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