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Pennsylvania healthcare providers settle whistleblower lawsuit for $662,000

Whistle BlowerEaston Hospital, Northampton Hospital Corporation, and Northampton Hospital Company have settled a claim of Medicaid fraud with the federal government for $662,000.  The suit was brought under the False Claims Act (FCA) by two employees acting as whistleblowers under its qui tam provision. The Cochran Firm, D.C. did not represent the plaintiffs in this matter.

The suit, filed in the U.S. District Court in the Eastern District of Pennsylvania, alleged the operators of Easton Hospital billed the federal government for unnecessary, incomplete, and unperformed medical procedures performed by Dr. Thomas Walden.  Some of the medical procedures called into question were treatments for kidney stones, bladder evaluations, and partial prostate removal.

The two employees who filed suit on behalf of the government allege the urological procedures were performed by Dr. Walden as part of a Medicare insurance fraud scheme.  Easton Hospital and the other parties to the suit denied the allegations but none the less settled with the federal government for $662,000.  As part of the qui tam provisions of the False Claims Act, the two whistleblowers will be entitled to a share of the settlement.

Qui tam whistleblower lawsuits

The False Claims Act rewards private citizens who step forward and prosecute cases of fraud on behalf of the federal government.  These individuals are known as “relators” and may be entitled to between 15 and 30 percent of a recovery made by the federal government.

The Cochran Firm, D.C. can help relators bring suit against those who would defraud the government.  If you have knowledge of Medicare, Medicaid, or any other type of fraud being perpetrated against the government, you may be entitled to a substantial reward if damages are recovered.


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