Florida Hospital System Agrees to Pay $1.5 Million to Resolve Liability Relating to Self-Disclosure of Improper Discounts

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Baptist Health System Inc. (Baptist Health), a hospital system based in Florida, has agreed to pay $1.5 million to settle allegations that it violated the False Claims Act. The allegations state that Baptist Health knowingly caused its subsidiaries to offer discounts to patients, thus inducing them to purchase or refer Baptist Health services reimbursed by federal healthcare programs. The Anti-Kickback Statute prohibits such actions, making it illegal to pay or receive remuneration for referring individuals to any services reimbursed by federal healthcare programs.

The United States claimed that Baptist Health subsidiaries provided excessive discounts, up to 50% or more, on patient cost-sharing obligation balances for certain categories of Medicare beneficiaries without considering financial need. These discounts were offered in exchange for the beneficiaries’ purchase or referral of services from Baptist Health subsidiaries.

Baptist Health voluntarily self-disclosed the conduct to the government and cooperated with the investigation. As a result, the United States acknowledged their cooperation and credited them for taking significant steps to address the issue.

Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, emphasized the use of the False Claims Act to combat healthcare fraud. He encouraged providers to make self-disclosures, cooperate with investigations, and adopt enhanced compliance procedures to mitigate the consequences of improper conduct.

The settlement signifies the government’s commitment to protecting taxpayer-funded healthcare programs. U.S. Attorney Roger B. Handberg for the Middle District of Florida stated that self-disclosures like this help recoup funds and are beneficial to healthcare providers.

The resolution was achieved through a collaborative effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, U.S. Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services’ Office of Inspector General.

It is important to note that the settlement does not indicate an admission of liability. The claims resolved by the settlement remain allegations until proven otherwise.

This case serves as a reminder of the government’s determination to combat healthcare fraud and the effectiveness of the False Claims Act in achieving justice. Individuals can report potential fraud, waste, abuse, and mismanagement to the Department of Health and Human Services through their hotline.

Overall, Baptist Health’s self-disclosure and cooperation demonstrate their commitment to addressing the issue and ensuring compliance with federal healthcare regulations.

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