(Reuters) – Covenant Well being Method, which operates additional than 20 healthcare facilities in Michigan, and two medical doctors have agreed to spend additional than $69 million to settle claims by federal and state authorities that medical doctors offered referrals to Covenant in exchange for kickbacks.

The settlements, announced on Wednesday by Eastern District of Michigan U.S. Lawyer Dawn Ison, stem from a whistleblower lawsuit filed in 2012 by Stacy Goldsholl, a medical doctor who worked at Covenant for 5 years. Goldsholl will get about $12.four million from the settlements, according to Ison’s workplace.

Authorities mentioned that Covenant billed federal well being insurance coverage applications like Medicare for solutions referred by medical doctors who had improper monetary relationships with the enterprise, violating the federal False Claims Act. These medical doctors allegedly incorporated Mark Adams and Asim Yunus, who reached separate settlements.

Lawyers for Covenant, Adams and Yunus did not instantly respond to requests for comment. The defendants did not any admit wrongdoing.

Covenant’s kickbacks to Adams incorporated overcompensating him through his employment at the enterprise and letting him use its employees and management solutions for cost-free, authorities alleged. Covenant contracted with Yunus to serve as a healthcare director from 2011 and 2015, they mentioned.

Covenant finalized its settlement in 2021, and has paid $67.two million to the federal government and $1.eight million to the state. The case remained below seal even though the investigation of Adams and Yunus continued.

Adams has paid the federal government about $406,000, and Yunus will spend about $346,000, Ison’s workplace mentioned.

A lawyer for Goldsholl declined to comment.

The case is United States ex rel Goldsholl v. Covenant Healthcare Method, U.S. District Court for the Eastern District of Michigan, No. 1:12-cv-15422.

For the government: Assistant U.S. Lawyer Jonny Zajac

For Goldsholl: David Haron of Hoyer Law Group

For Covenant: Andrew Sparks of Dickinson Wright

For Adams: Louis Gabel of Jones Day

For Yunus: Robert Iwrey of The Well being Law Partners

Our Requirements: The Thomson Reuters Trust Principles.

Brendan Pierson

Thomson Reuters

Brendan Pierson reports on solution liability litigation and on all regions of well being care law. He can be reached at brendan.pierson@thomsonreuters.com.