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Press Release

Lakeway Regional Medical Center Agrees to Pay more than $1.1 Million to Settle Civil False Claims Act Allegations

For Immediate Release
U.S. Attorney's Office, Western District of Texas

U.S. Attorney John F. Bash of the Western District of Texas announced today that Lakeway Regional Medical Center, LLC (LRMC) has agreed to pay the United States and the State of Texas $1,119,177.21 to resolve allegations LRMC submitted false claims to the Medicare and Medicaid programs. 

LRMC developed and operated a hospital in Lakeway, TX.  The settlement resolves allegations that LRMC induced certain physicians to refer patients to the hospital by offering them a low-risk, high-reward investment in a joint venture formed to purchase and then lease the hospital back to LRMC.  The United States contends that claims for reimbursement submitted by LRMC to the Medicare and Medicaid programs between March 2, 2015, and August 31, 2016, based on these referrals were unlawful under the federal Anti-Kickback Statute. 

The allegations in this case were initially brought by Robert Van Boven, M.D, and Sharon Van Boven in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims, and to receive a share of any recovery.  The Van Bovens’ qui tam suit remains under seal, subject to an order of the Court permitting the United States to disclose this settlement.

Assistant U.S. Attorney Thomas Parnham and Special Assistant U.S. Attorney Susan Strawn handled the matter for the Western District of Texas.  U.S. Attorney Bash also thanked the Department of Health and Human Services Office of Inspector General and the Commercial Litigation Branch of the Department of Justice’s Civil Division for their assistance.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Updated September 28, 2020

False Claims Act