Mealey's Insurance - Alabama Hospital System, Physician Group To Pay $24M Over Medicare Referrals

MOBILE, Ala. - A physician group and two clinics that are part of the Alabama-based Infirmary Health System Inc. (IHS) on July 21 agreed to pay $24 million to resolve a lawsuit brought by the federal government accusing the defendants of violating the False Claims Act by paying or receiving financial inducements in connection with claims to the Medicare program, according to a docket entry in Alabama federal court (United States of America, ex rel. Heesch v. Diagnostic Physicians Group P.C., et al., No. 11-0364-KD-B, S.D. Ala.).

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