Baptist Health System Inc., located in Florida, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by knowingly causing its subsidiaries to offer discounts to patients to induce them to purchase or refer Baptist Health services reimbursed by federal healthcare programs. In connection with the settlement, the United States acknowledged that Baptist Health took significant steps entitling it to credit for cooperating with the government’s investigation.
The United States alleged that Baptist Health subsidiaries provided discounts of up to 50% or more on patient cost sharing obligation balances for certain categories of Medicare beneficiaries, chosen by Baptist Health, without regard to any financial need consideration, during the period from Jan. 1, 2016, through Aug. 15, 2022. The United States contends that Baptist Health subsidiaries provided these discounts in exchange for the beneficiaries’ purchase or referral of services by certain categories of Medicare beneficiaries from Baptist Health subsidiaries.
Baptist Health voluntarily self-disclosed this conduct to the United States. In addition, Baptist Health cooperated with the government’s investigation and took remedial measures, including discontinuing its discount policy, conducting an internal compliance review, and providing the United States with a detailed disclosure statement and other supplemental information to assist the United States in its investigation.
