McAllen-based South Texas Health Systems has agreed to pay $27.5 million to settle allegations by the Department of Justice that it provided kickbacks to doctors for referring patients to hospitals within its system, according to the San Antonio Express-News.
The settlement arose out of a whistle-blower lawsuit filed Bruce Moilan in 2005. Moilan is a former employee of Heath Systems and will receive $5.5 million from the settlement. Moilan claimed that the kickbacks were disguised through contracts that included lease agreements as well as medical directorships.
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