Facts

Maria Lucy Reimche was the former chief financial officer for the defendant Tulare Healthcare agencies. She filed a qui tam action against the Tulare Healthcare groups claiming defendants violated the federal False Claims Act and the Anti-Kickback Statute, which prohibits compensation for referrals payable by a federal healthcare program.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that defendants submitted claims to the Medicare system as part of an illegal scheme to compensate doctors who referred patients to the defendants' facilities. Plaintiff claimed that from 2001 to 2007, defendants provided doctors involved in the scheme rental arrangements at below-market rates, allowed the purchase of commercial property at below-market rates, and forgave debts.

Result

The parties settled for $2,411,030 without admitting any wrongdoing. Reimche will receive $500,000 from the settlement.