June 29, 2006 Tenet Healthcare Corporation
Tenet Healthcare Corporation, operator of the nation’s second largest hospital chain, has agreed to pay more than $900 Million to settle claims raised by private qui tam relators. The allegations of the case were that Tenet engaged in unlawful billing practices which included allegations of upcoding (billing for a more expensive medical service than a medical service which had actually been provided), billing for services and supplies which were never provided, and paying kickbacks to physicans who referred Medicare patients to Tenet’s facilities.
As part of a settlement, the relators who filed the qui tam claims are expected to receive up to $225 Million for having filed the claims.
See U.S. Dept of Justice Press Release 6/29/06