Catholic Medical Center agrees to resolve kickback allegations by paying $3.8M

Catholic Medical Center agrees to resolve kickback allegations by paying $3.8M

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Although Catholic Medical Center denies allegations that its call coverage arrangement—which is no longer in place—violated federal law, the center agreed to settle to avoid the expenses of civil litigation, said Lauren Collins-Cline, spokesperson for Catholic Medical Center, in a statement.

“CMC holds itself to the highest ethical standards in patient care and business conduct,” Collins-Cline said. “That’s embedded in our mission, and will always remain our highest priority.”

“Today’s settlement sends a clear message that these types of financial arrangements will not be tolerated,” said Phillip Coyne, special agent in charge for the U.S. Department of Health and Human Services, Office of Inspector General, in a news release. “We will continue to work with our law enforcement partners to ensure that all medical providers properly follow healthcare rules and regulations.”

The civil lawsuit against Catholic Medical Center was originally filed under the False Claims Act by whistleblower Dr. David Goldberg, a former employee of the center. As part of the settlement, Goldberg is set to receive a portion of the settlement amount.

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