August 18, 2006 University Hospitals Health Systems Inc.
University Hospitals Health Systems Inc. has agreed to pay $13,880,000 dollars to settle claims raised in a qui tam action filed by Dr. Thomas J. Kirby, a heart surgeon formerly affiliated with University Hospitals.
The allegations of the case were that University Hospitals had entered into illegal financial arrangements with physicians who practice at the hospitals in order to induce referrals from the physicians to the hospitals.
Dr, Kirby alleged that these arrangements were in violation of federal laws which prohibit such arrangements.
As part of the settlement, Dr. Kirby is to receive $1.5 Million Dollars for having filed the qui tam case.
See U.S. Dept of Justice Press Release 8/18/06