Adventist Health Systems pays nearly $119 million to settle whistleblower case over patient referrals by docs

A former Adventist Health Systems executive and three former employees filed a lawsuit against the Adventist Health System over doctor referrals and the whistleblower case was settled today by the Department of Justice for payment by Adventist of $118,751,080. The case alleged violations of the “Stark Statute” restricting financial relationships that hospitals have with doctors to refer patients.

The whistleblowers were represented by Marlan Wilbanks of Atlanta.  The senior Adventist Exec who filed the case, Sherry Dorsey was a corporate VP of the company in 2012. Ms. Dorsey and the other whistleblowers are entitled to collect a percentage of the moneys the Government recovers under The False Claims Act.

According to counsel for the whistleblowers, the settlement sets a record based on violations of the Stark Statute.  More to come on this case.