A hospital and cardiology practice have reached a deal with the U.S. Department of Justice to bring an end to a Medicare kickbacks lawsuit in a $21 million settlement.

A University of Pittsburgh Medical Center hospital, along with Medicor Associates Inc., an associated cardiology practice, were hit with a whistleblower lawsuit over illegal Medicare kickbacks back in 2010. The lawsuit alleged that the hospital, UPMC Hamot, provided Medicare kickbacksfor doctors at Medicor Associate in exchange for securing patient referrals.

According to the Medicare kickbacks lawsuit, UPMC and Medicor had arrangements for services that the hospital did not need. “In some instances, the services were either duplicative or were not performed,” the Department of Justice (DOJ) stated.

“Financial arrangements that improperly compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said acting Assistant Attorney General Chad Readler in a statement about the settlement. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”

The Medicare kickbacks lawsuit originated as a whistleblower lawsuit from Tullio E., a cardiologist for Medicor who filed under the False Claims Act back in 2010.

At first, the government did not intervene in the litigation, but in February, the DOJ formally joined the lawsuit. While the trial was scheduled to begin in November, the settlement agreement cut that short. The settlement agreement does not determine any liability, but instead brings to an end the years-long litigation.

The settlement would “send a message to the community out there that these financial arrangements can’t be placed above the patients’ needs,” according to Law360.

This Medicare kickbacks lawsuit and others like it were filed under the False Claims Act, which can lead to significant recovery of fraudulent spending, as well as further penalties.

Filing a Whistleblower Lawsuit Over Medicare Kickbacks

Whistleblowers are individuals who report illegal activities against the government, like Medicare kickbacks, committed by either their current or former employers. Many employees choose to come forward as whistleblowers because they do not feel right about their employer’s illegal actions. A whistleblower lawsuit can be filed while working at the company, but can also be filed after having left the company.

While a person considering becoming a whistleblower may be worried that they will face retaliation for their actions, there are regulations in place to protect whistleblowers from such retaliation. Plus, the whistleblower is typically given a substantial reward—often between 15 and 30 percent of the money recovered in the subsequent whistleblower lawsuit.

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