Prime Healthcare Services, Doctors to Pay $37.5M to Settle False Claims Allegations

Federal prosecutors and California’s attorney general announced that one of the largest hospital systems in the country and two of its doctors agreed to pay $37.5 million to resolve civil allegations of kickbacks, billing for a suspended doctor and inflating invoices for medical hardware. The defendants denied any wrongdoing, according to court documents, but accepted the deal to avoid the delay, uncertainty and expense of litigation. Terms of the deal also preclude efforts to exclude the defendants from continuing to participate in state or federal health care programs. The settlement...