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Vitas Health Corporation Midwest, Kickback Scheme, Michigan 2020
The Vitas Health Corporation Midwest has agreed to pay $200,000 to resolve allegations that it violated the False Claims Act and the Anti-Kickback Statute by paying Dr. Farid Fata for patient referrals to its hospice care services. The announcement was made by U.S. Attorney Barbara L. McQuade in Michigan.
According to the allegations, from mid-2012 through early 2014, Vitas contributed $15,750 to the Swan For Life Cancer Foundation, a cancer charity established by Dr. Farid Fata. In return, Fata referred 23 patients to Vitas for hospice care. The allegations were brought to the government by a whistleblower, known as a relator, under the qui tam provisions of the False Claims Act.
Rita Dubois, the relator, worked at Vitas as the Director of Market Development in Southeastern Michigan from November 2012 to January 2014. Dubois will receive $36,000 out of the $200,000 settlement for her role in filing the qui tam action.
“Patients deserve to receive referrals based on the quality of the services provided, not based on illegal kickback arrangements between medical providers,” McQuade said. “We are working to root out practices that enrich doctors and medical businesses at the expense and potential safety of patients.”
The case was investigated jointly by the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Health and Human Services, Office of Inspector General.
In an earlier unrelated criminal matter, Dr. Farid Fata pleaded guilty to health care fraud, conspiracy to pay and receive kickbacks, and promotional money laundering, and was sentenced to a term of 45 years in prison. The charges against Dr. Farid Fata were unrelated to the civil False Claims Act suit filed against Vitas Health Corporation Midwest.
Mandatory Facts:
- Defendant: Vitas Health Corporation Midwest
- Criminal Charges: Violation of the False Claims Act and the Anti-Kickback Statute
- City and State: Michigan
- Exact Date: N/A
- Sentence or Outcome: $200,000 settlement
- Dollar Amounts: $200,000 (settlement), $15,750 (kickback payments), $36,000 (whistleblower reward)
Key Facts
- State: Michigan
- Category: Health Care Fraud
- Source: DOJ Press Release â†â€â€
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