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Press Release

Government Settles Alleged False Claims Act Violations With Memorial Health, Inc.

For Immediate Release
U.S. Attorney's Office, Southern District of Georgia

SAVANNAH, GA: Memorial Health, Inc., Memorial Health University Medical Center, Inc., Provident Health Services, Inc., and MPPG, Inc. d/b/a Memorial Health University Physicians have agreed to pay $9,895,043.04 to resolve allegations that they violated the False Claims Act by submitting claims to the Government in violation of the Stark Law.  The settlement is the largest civil health care fraud recovery in the history of the United States Attorney’s Office for the Southern District of Georgia.

United States Attorney Edward J. Tarver said, “This settlement demonstrates the U.S. Attorney’s Office’s continued commitment to ensure that health care providers do not violate the Stark Law and all medical decisions are based strictly on the best interests of patients, not the financial interests of providers.”

“Let this settlement act as a reminder to health care providers, large and small, that the Office of Inspector General is committed to pursuing allegations of Stark Law violations,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Financial incentives for referrals should never come into play for health care providers when they are determining the best course of care for our nation’s citizens.”

The settlement resolves allegations that were originally part of a federal lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private citizens with knowledge of false claims to file suit on behalf of the Government and to share in the recovery. As part of this settlement, Memorial entered into a five-year corporate integrity agreement with the Office of Inspector General, Department of Health and Human Services.

The case was investigated by Kimberly Reinken Creamer from the United States Attorney’s Office and Special Agent David Graupner, Department of Health and Human Services, Office of Inspector General.  The United States was represented by Assistant United States Attorneys Edgar D. Bueno and J. Thomas Clarkson.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

Updated December 23, 2015

Health Care Fraud