Adventist Health Systems pays nearly $119 million to settle whistleblower case over patient referrals by docs

A former Adventist Health Systems executive and three former employees filed a lawsuit against the Adventist Health System over doctor referrals and the whistleblower case was settled today by the Department of Justice for payment by Adventist of $118,751,080. The case alleged violations of the “Stark Statute” restricting financial relationships that hospitals have with doctors to refer patients.

The whistleblowers were represented by Marlan Wilbanks of Atlanta. Œ The senior Adventist Exec who filed the case, Sherry Dorsey was a corporate VP of the company in 2012. Ms. Dorsey and the other whistleblowers are entitled to collect a percentage of the moneys the Government recovers under The False Claims Act.

According to counsel for the whistleblowers, the settlement sets a record based on violations of the Stark Statute.  More to come on this case.