Published: Jul 12, 2013
By Chris Kaiser
Cardiologist Julie A. Kovach stands to receive up to $120,000 as her share of a whistleblower lawsuit that has been settled for $4 million.
Kovach filed a lawsuit under the False Claims Act against Jackson Cardiology Associates and its owner, cardiologist Jashu Patel MD, and against Allegiance Health, a hospital, all located in Jackson, Mich., alleging medically inappropriate cardiology procedures.
The evidence showed that Patel ordered cardiac caths for patients based on findings from nuclear stress tests that he improperly read as positive. The government found that three-quarters of these patients had no significant heart blockages, according to a statement from the U.S. Attorney’s Office of Eastern District of Michigan.
Kovach also alleged that Patel and Jackson Cardiology Associates performed a variety of other office-based medically unnecessary tests, as well as unnecessary stenting procedures.
Because payment for the procedures came from Medicare or Medicaid, the U.S. is entitled to money damages under the False Claims Act.
The Act includes a “qui tam” provision that allows people who are not affiliated with the government to file actions on behalf of the government, also known as whistleblowing.
People filing under the False Claims Act stand to receive a portion of the recovered damages, generally about 15% to 30%.
The government typically gets involved in qui tam cases after an investigation proves the evidence is credible.
Patel and Jackson Cardiology Associates settled the case against them for $2.2 million and Allegiance Health, where many of the cardiac caths were performed, settled for $1.8 million.
Allegiance Health admits no wrongdoing and “reached an agreement in order to devote resources to providing excellent healthcare for the community rather than litigation,” according to a statement released by the health system.
In addition to the monetary settlement, the resolution also provides that Jackson Cardiology Associates and Allegiance Health enter into Integrity Agreements with the Department of Health and Human Services and the Office of the Inspector General.
Thanks to @larlegal for the heads up.
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