US to Join Suit Against TN Health System Alleging $800M Fraud Scheme: Report

The U.S. government filed a motion to intervene in a whistleblower false claims lawsuit filed against Methodist Le Bonheur Healthcare in Memphis, Tenn, Becker’s reports.

The original whistleblower lawsuit, filed in 2017 and unsealed in 2019, alleges Methodist Le Bonheur Healthcare paid kickbacks that allowed The West Clinic’s outpatient treatment centers to become part of Methodist Le Bonheur and allowed West Clinic to manage inpatient and outpatient adult care at Methodist Le Bonheur. The plaintiffs claim that one purpose of the alleged fraud was to induce referrals from oncologists and other medical specialists at Memphis-based West Clinic to Methodist Le Bonheur.

The lawsuit claims physicians at West Clinic were given kickbacks for referrals of cancer patients for hospital admissions, chemical infusions, radiation and certain outpatient procedures. Read more.

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