HealthSouth Corp. and three physicians who were partners in Seacoast Trust have agreed to pay more that $1 million to resolve claims that they violated the False Claims Act. The government had alleged that they submitted claims to Medicare based on referrals that were tainted by an improper financial relationship.
According to the allegations, HealthSouth paid Seacoast Trust above-market rent in order to induce referrals to HealthSouth’s sports medicine and rehabilitation center, which was housed in a building owned by Seacoast Trust.
The suit originated as a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.
The United States Attorney’s Office for the District of New Hampshire issued a March 7, 2007 press release on the settlement.