Crittenton pays $791K to settle Fata claims
Detroit – Crittenton Hospital Medical Center and related entities agreed Monday to pay $791,047 to settle health care fraud allegations involving convicted cancer doctor Farid Fata.
The settlement stems from claims the Rochester Hills hospital and its cancer center violated the False Claims Act by billing for medically unnecessary laboratory tests performed on Fata’s patients.
Fata is serving a 45-year federal prison term for health care fraud, conspiracy to pay and receive kickbacks and money laundering.
A whistleblower who worked for Fata questioned the need for tests performed between September 2011 and August 2013.
Crittenton and its owners, Ascension Michigan and Ascension Health, voluntarily disclosed that the lab tests were unnecessary, the Justice Department said Monday.
Under the settlement, the whistleblower will receive $158,209.
“We remain committed to cooperating with the Department of Justice on these matters that occurred prior to Crittenton becoming part of our health system,” Ascension Michigan spokesman Brian Taylor said in a statement. “Our thoughts and prayers continue to be with the patients and their families.”