The U.S. Department of Justice will pursue a False Claims Act lawsuit against Erlanger hospital after two former high-ranking employees accused the health system of offering illegal kickbacks to physicians who brought more patients and revenue.
Erlanger’s former chief compliance officer, Alana Sullivan, and former chief financial officer, Britt Tabor, filed a federal whistleblower lawsuit against Erlanger in April 2021. The suit recently became public.
Sullivan and Tabor allege hospital leaders paid physicians excessively and provided other incentives to encourage them to refer patients to Erlanger, the complaint states. The health system then allegedly filed false insurance claims based on the illegal self-referrals to government providers, including Medicare and Medicaid.
After investigating the claims, the federal government has chosen to join the lawsuit, an April 26 notice of election shows. The U.S. Department of Justice plans to file its official complaint by July 29.