Wisconsin Health System Settles Stark Claims for $12 Million

Case: In a case that began as a whistleblower suit, a company affiliated with Advocate Aurora Health, Inc. has agreed to pay $12 million to settle claims of violating the Stark Law. The US and State of Wisconsin cited the company for improper relationships with a pair of physicians between 2008 and 2012, including providing compensation:

• At above fair market levels;
• That took into account the volume of anticipated referrals; and
• That covered unidentifiable services.

Significance: The case is a good illustration of how whistleblower lawsuits become a lingering pain in the side that may be hard to settle. Although the relator who brought the original suit will get a share of the $12 million recovery, the government intervention covered only some of the original claims. As a result, the settlement doesn’t end the litigation and the whistleblower suit will continue as a separate case covering the residual claims. The good news for Aurora is that:

• The government won’t be involved in the subsequent case; and
• The settlement will have no bearing on its liability in that case.