HHS requires Sanford Health to hire auditor after $20M fraud settlement: 3 key notes

Practice Management

Sioux Falls, S.D.-based Sanford Health reached an agreement with the federal government to continue Medicare participation after the health system settled a whistleblower lawsuit alleging one of its neurosurgeons committed fraud, according to KFGO.

 

Three key notes:

1. Sanford Health paid more than $20 million to settle a lawsuit that accused a neurosurgeon formerly employed by the health system of defrauding Medicare. The neurosurgeon performed allegedly unnecessary procedures and implanted devices from a company that he had ownership in.

2. Under the most recent agreement, Sanford Health will hire an outside auditor to monitor billing and HHS will allow the health system to continue participating in federal programs, including Medicare.

3. Sanford is also required to hold training for medical staff about anti-kickback laws on a yearly basis.

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