Community Health Network Settles False Claims Act Violations for $345 Million

Community Health Network, an Indianapolis-based healthcare network, has agreed to pay $345 million to settle allegations that it violated the False Claims Act by knowingly submitting Medicare claims for services referred in violation of the Stark Law. The network allegedly engaged in a scheme to pay improper compensation to physicians to illegally refer patients to its hospitals and associated medical facilities. The network overcompensated its cardiologists, surgeons, and other physicians, sometimes paying double what they received through private practice. The settlement includes a five-year Corporate Integrity Agreement, and the network denies any wrongdoing.