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Former Hospital CFO Blows Whistle on Stark, Kickback, and False Claims Violations

July 15, 2010

Gregory Schulten — former CFO of Gibson General Hospital in Princeton, Indiana — has sued his former employer and Princeton Ambulatory Surgery Center as well as related entites and individuals for allegedly violating the federal False Claims Act and paying and accepting illegal kickbacks. According to the recently unsealed Complaint, Princeton Ambulatory Surgery Center fraudulently shifted its billing over to Gibson after Medicare decreased its dollar reimbursements to amubulatory care centers in 2007. Under the current HHS regulations, critical access hospitals recieve significantly higher reimbursement rates than ambulatory care facilities for the same services. According to the Complaint, the hospital passed on the benefit of the fraudulently increased payments to Princeton in exchange for patient referrals from Princeton physicians. Read the entire Complaint below:
Whistleblower Ambulatory Care Center Complaint

To report healthcare fraud or other false claims act violations, contact Frohsin & Barger.

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