Beaumont Health settles $84 million false claims case

Beaumont Health agreed to pay an $84.5 million settlement to the U.S. Justice Department, the state of Michigan and four whistleblowers for violating federal laws that bar hospitals from overcompensating physicians and filing false claims.

The settlement resolves whistleblower lawsuits filed by four former employees and physicians of Beaumont that go back to contract arrangements with physicians from 2004 to 2012.

The Justice Department said in a statement that Beaumont violated the federal False Claims Act by engaging in improper relationships with eight referring physicians that led to submitting false claims to Medicare, Medicaid and the military’s Tricare program.

Under the settlement, Beaumont, based in Royal Oak, Mich., also will enter into a five-year corporate integrity agreement with HHS.

“That agreement is consistent with and will complement our current commitment to effective compliance policies and processes,” said Beaumont CEO John Fox, who succeeded Gene Michalski in January 2015. “We will continue to work with the HHS to ensure the highest levels of compliance and transparency at all levels of the organization. Most importantly, we will continue forward with our focus on our critical mission of delivering compassionate, extraordinary care to our patients, families and the communities we serve.”

Beaumont Health was formed in 2014 with the merger of Beaumont Health System, Oakwood Healthcare and Botsford Hospital.