Harris Methodist HEB Hospital (HEB) of Bedford, Texas, has agreed to pay the state of Texas and the federal government $1.9 million in settlement of a False Claims Act suit.

HEB’s corporate parent self-disclosed to the inspector general of the Dept. of Health and Human Services that it had discovered a physician lease arrangement that might have been in violation of federal law. Following an investigation, the U.S. and Texas alleged HEB was paid by the Medicare and Texas Medicaid programs for orthopedic items and services referred to HEB by a physician group that had received free rent from HEB.

Additional details are available in the December 10, 2007 press release from the U.S. Attorney’s Office for the Northern District of Texas.

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