A Texas hospital is set to pay $7.5 million in a Medicare whistleblower settlement, bringing an end to claims of illegal kickbacks.

The hospital involved in the Medicare whistleblower settlement is Pine Creek Medical Center LLC, a physician-owned hospital in the Dallas/Fort Worth area. The whistleblower lawsuit alleged that the hospital paid physicians illegal kickbacks so that they would make unnecessary surgical referrals, in violation of the False Claims Act.

According to the lawsuit, Pine Creek used an illegal kickback scheme in which it would pay for marketing services for physicians, and physicians would, in turn, refer their patients to Pine Creek. This scheme lasted from at least 2009 and 2014, the lawsuit alleges.

The Department of Justice announced the Medicare whistleblower settlement agreement this month. “Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said the head of the Justice Department’s Civil Division, Principal Deputy Assistant Attorney General Chad A. Readler. “Improper financial incentives can distort medical decision making and drive up healthcare costs for federal health care programs and their beneficiaries.”

The issue was first brought to the attention of the federal government by former employees of Pine Creek’s marketing department who acted as whistleblowers. Whistleblower lawsuits, or qui tam lawsuits, can result in the whistleblowers being granted a substantial sum for their part in the litigation. The two whistleblowers in this lawsuit will receive an award of $1,125,000.

One of the most important ways to combat healthcare fraud like this is the False Claims Act. Whistleblowers are especially helpful in pursuing these issues, as they are able to bring serious issues to the attention of the federal government.

“Hospitals that try to boost their profits by paying kickbacks to physicians will instead pay for their improper conduct,” said Special Agent in Charge C.J. Porter. “We will continue to investigate such illegal business arrangements that undermine impartial medical judgment.”

Pursuing a Medicare Whistleblower Settlement

Whistleblowers are individuals who report the fraud and illegal activities against the government of their current or former employers. Many employees choose to come forward as whistleblowers because they do not feel right about their employer’s actions.

A whistleblower lawsuit can be filed while working at the company, but it can also be filed after having left the company, as in the case of the former Pine Creek marketing employees involved in this Medicare whistleblower settlement.

While a person considering becoming a whistleblower may be worried that they will face retaliation for their actions, there are legal provisions in place to protect whistleblowers from such retaliation. Plus, a successful whistleblower is typically given a substantial reward—often between 15 and 30 percent of the money recovered in the subsequent whistleblower lawsuit. In this Medicare whistleblower settlement, the whistleblowers were given $1.125 million of the $7.5 million total settlement money.

If you believe you have witnessed some kind of fraud by your current or former employer, you may be able to file a whistleblower lawsuit (also known as a qui tam lawsuit) against your employer on behalf of the government.