Department of Justice Seal

FRIDAY, JUNE 12, 1998	
(202) 616-2765
TDD (202) 514-1888


                            TO SETTLE FALSE CLAIMS CASE

	WASHINGTON, D.C.    The University of Texas Health Science
Center at San Antonio (UTHSCSA) will pay the United States $17.2
million to settle allegations that UTHSCSA submitted false claims
for reimbursement to several federally funded health care
insurance programs.    

	Assistant Attorney General Frank Hunger of the Civil
Division said that today's settlement resolves allegations that
UTHSCSA, a component of the University of Texas, submitted claims
to Medicare, Medicaid and other federal programs without
possessing sufficient documentary evidence to support those

	The charges were brought against UTHSCSA and University of
Texas Medical School at San Antonio, a component of UTHSCSA, by a
former employee, Benjamin Kready, under the qui tam provisions of
the False Claims Act.  Kready filed his suit in U.S. District
Court in San Antonio, Tex., in 1996.

	Kready's complaint alleged that University of Texas Medical
School at San Antonio submitted claims between January 1990 and
December 1995 for services that were personally provided by
faculty physicians when, in fact, defendants' records do not
support these claims.  Kready alleged that four federally funded
programs were overcharged by these practices  Medicare,
Medicaid, the Civilian Health and Medical Program of the
Uniformed Services, and the State Legalization Alien Impact
Assistance Grant programs.

	Hunger said the settlement is an example of the Department's
determination to insure that the government is compensated for
all False Claims Act violations involving the practices of
physicians at teaching hospitals.  

	The $17.2 million settlement will result in the dismissal of
Kready's suit.  Under the settlement, Kready will receive $2.58
million for bringing the matter to the attention of the

	Under the qui tam provisions of the False Claims Act, a
private party can file an action on behalf of the U.S. and
receive a portion of the settlement if the government takes over
the case and reaches a monetary agreement with the defendants.

	The case was investigated by the Department of Health and
Human Services Office of the Inspector General in San Antonio and
the Defense Criminal Investigative Service.  The Justice
Department's Civil Division negotiated the settlement.