Texas Hospital Agrees to Pay more than $1.1M to Settle Civil False Claims Act Allegations

US Attorney John F. Bash of the Western District of Texas announced today that Lakeway Regional Medical Center, LLC (LRMC) has agreed to pay the United States and the State of Texas $1,119,177.21 to resolve allegations LRMC submitted false claims to the Medicare and Medicaid programs. LRMC developed and operated a hospital in Lakeway, TX. The settlement resolves allegations that LRMC induced certain physicians to refer patients to the hospital by offering them a low-risk, high-reward investment in a joint venture formed to purchase and then lease the hospital back to LRMC. The United States contends that claims for reimbursement submitted by LRMC to the Medicare and Medicaid programs between March 2, 2015, and August 31, 2016, based on these referrals were unlawful under the federal Anti-Kickback Statute. The allegations in this case were initially brought by Robert Van Boven, M.D, and Sharon Van Boven in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims, and to receive a share of any recovery. The Van Bovens’ qui tam suit remains under seal, subject to an order of the Court permitting the United States to disclose this settlement.

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