Massachusetts Healthcare System Agrees to Pay $4.7M to Resolve Allegations of False Claims Act Violations

Steward Health Care System LLC and several related corporate entities have agreed to pay approximately $4.735 million to resolve allegations that its relationships with several physicians and physician practice groups violated federal law, including the False Claims Act. Despite its public denials, in the signed settlement agreement, Steward “admits, acknowledges, and accepts responsibility” for the facts underlying the government’s allegations. Steward is one of the largest, private for-profit healthcare networks in the nation and the owner of multiple hospitals in Massachusetts. Steward owns and operates Steward Good Samaritan Medical Center, Inc. (GSMC), a for-profit hospital in Brockton. In connection with the settlement, GSMC has entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its financial arrangements for compliance with the Anti-Kickback Statute and the Stark Law by an Independent Review Organization.

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