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Whistleblower suit against Iasis Healthcare unsealed

A former Iasis Heathcare executive has alleged in a qui tam suit that the hospital chain performed unnecessary medical procedures and illegally compensated doctors for patient referrals . The whistleblower suit, filed under the False Claims Act, claims that Iasis paid doctors for referrals in various hidden ways, including entering into contracts for sham medical directorships, giving doctors below-market rent for office and lab space, and leasing equipment from doctors at above fair-market rates.

The suit was unsealed by the federal District Court in Phoenix, AZ, after the government filed a notice that it was unable to meet a court-imposed deadline for a decision on whether it would intervene in the case.

The whistleblower, Jerre Frazier, a former vice president for ethics and compliance for Iasis Healthcare, is represented by Phillips & Cohen LLP.

Insurance NewsNet carried the story on August 13, 2007.

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