LOS ANGELES (CN) – Tulare Healthcare will pay $2.4 million to settle allegations of Medicare fraud. Its former CFO filed a whistleblower suit accusing Tulare of illegally paying doctors for referrals.
Without admitting wrongdoing, Tulare Healthcare agreed to settle claims that doctors who referred Medicare patients received rental arrangements at below-market rates, were able to purchase commercial real estate at below-market value, and had debts forgiven.
Tulare Local Healthcare District, Tulare District Healthcare System and Tulare District Hospital are included in the settlement.
Tulare’s former CFO Maria Lucy Reimche accused Tulare of billing Medicare for patients who had been referred through the cozy arrangements. She alleged violations of False Claims and the Anti-Kickback laws.
Tulare operates in Central California, but Remiche sued in Los Angeles because Tulare’s claims were paid by the Medicare office in Camarillo.
Reimche’s lead counsel was Michael Hirst with Hirst & Chanler.