New York Medical Center Pays $3.5 million to Settle Whistleblower Lawsuit

A New York medical center has agreed to pay $3.5 million to settle False Claims Act allegations brought by the U.S. Attorney for the Northern District of New York, states a January 25, 2012, Department of Justice press release. An investigation of the medical center was conducted after a plastic surgeon filed a civil complaint under the federal “whistleblower” statute alleging that the facility submitted false claims to Medicare and Medicaid in connection with improper physician recruitment agreements that violated the Stark Law.