tci Medicare Compliance & Reimbursement - 2003 Issue 13

Hospitals: WHISTLEBLOWER WINDFALL IN RECORD-BREAKING STARK CASE

A hospital employee who blew the whistle on alleged stark violations in a hospital-physician practice lease deal will collect a big chunk of the settlement proceeds - and those proceeds represent the biggest Stark settlement ever.Rapid City Regional Hospital and Oncology Associates agreed to pay about $6.5 million to settle the qui tam action, which was initially brought by former RCRH employee Karen Johnson-Pochardt. The Department of Justice maintained that Johnson-Pochardt ought to get 16 percent of the proceeds for her role as qui tam relator - but a federal judge Feb. 26 ordered that she collect...

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