United States v. Halifax Hosp. Med. Ctr.

United States v. Halifax Hosp. Med. Ctr.

Opinion

Order

This matter comes before the Court on the corrected Motion for Partial Summary Judgment (Doc. 295) filed by the Relator, Elin Baklid-Kunz ("Baklid-Kunz" or the "Relator"). The Defendants have filed a memorandum in response (Doc. 314), and Baklid-Kunz has filed a reply (Doc. 333). By way of the instant motion, Relator seeks summary judgment as to the Defendants' liability under the False Claims Act ("FCA"), 31 U.S.C. § 3729 et seq., arising out of the remuneration paid to certain oncologists, allegedly in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b).¹

I. Background

Halifax Hospital Medical Center ("Halifax Hospital") is a special taxing district that operates a community hospital of the same name in Volusia County, Florida.  [*3] (Doc. 277 at 9). Halifax Staffing, Inc. ("Halifax Staffing") is an instrumentality of Halifax Hospital. Halifax Staffing employs the individuals who work for Halifax Hospital. Halifax Hospital pays all of the expenses and obligations of Halifax Staffing, including payroll, either directly or by transfer of funds into Halifax Staffing's payroll account. Baklid-Kunz worked at Halifax Hospital for more than a decade, including serving as Director of Physician Services. (Doc. 295 at 9).

Halifax Staffing entered into employment agreements with six medical oncologists: Boon Chew, Walter Durkin, Ruby Anne Deveras, Abdul Sorathia, Richard Weiss, and Gregory Favis (collectively, the "Medical Oncologists"). The employment agreements provided that the Medical Oncologists would receive a salary and bonuses. (Doc. 277 at 11).

In fiscal year 2005, the Medical Oncologists became eligible to receive a bonus (henceforth, the "Incentive Bonus") pursuant to the following provision of their employment agreements:

Compensation [Halifax Staffing] shall pay to Employee as compensation for services the following:

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