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Cayuga Medical Center Settles Qui Tam Lawsuit for $3.5 Million

The Department of Justice announced that Cayuga Medical Center of Ithaca, New York (“Cayuga”) settled a lawsuit filed under the qui tam provision of the False Claims Act regarding false claims submitted to the Medicare and Medicaid programs. The qui tam lawsuit was filed on behalf of whistleblower Daniel S. Joregenson, M.D.

According to the complaint, Cayuga recruited physicians pursuant to recruitment agreements, in violation of federal law, and submitted claims for payment to Medicare and Medicaid, certifying it was in compliance with federal law, when it was not.

Federal law prohibits a physician from referring a patient to a medical facility if that physician has a financial relationship with the facility, unless some exception applies. Medical facilities are also prohibited from billing Medicare or Medicaid for a prohibited referral. However, federal law does permit medical facilities to pay certain limited expenses of medical practices that employ physicians recruited to the area by the facility.

The qui tam complaint alleged that Cayuga paid for expenses that were not permitted by law, used improper recruitment agreements, and submitted false claims to Medicare and Medicaid, when it certified it was in compliance with federal rules and regulations when, in fact, it was not.

Of the $3,576,056 settlement amount, the whistleblower will receive $566,955.18 as a reward.

If you have any firsthand knowledge, information, or evidence related to any federal, state, county or city government fraud, you should speak with an experienced qui tam lawyer who can help you understand your legal rights and help you obtain the compensation you deserve.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.