Sutter Health to pay $30M to settle secret kickback lawsuit

SACRAMENTO, Calif. (AP) — Sutter Health has agreed to pay more than $30 million to the federal government to settle a lawsuit that accused it of paying doctors in exchange for patient referrals.

The Sacramento Bee reports the agreement settles a 2014 secret lawsuit and was filed by the federal government and Laurie Hanvey, a whistleblower who once worked for Sutter as its compliance officer. The suit remained sealed until Thursday.

Hanvey’s attorney, Michael Hirst, says the government will pay $5.795 million to Hanvey and her attorneys from the settlement as a result of her bringing her claims to government officials’ attention.

Sutter officials said in a statement the settlement resolves overpayments that Sutter had received from the federal government. They said the company has not conceded any wrongdoing as part of the settlement.

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Information from: The Sacramento Bee, http://www.sacbee.com

Categories: California News