Following up on a post from last week entitled “OIG Issues Fraud Alert on Medical Director Arrangements“, the US Department of Justice announced today a $17 million settlement of a False Claims Act suit brought by the former CFO of a Miami nursing home network.

The FCA claim accused the nursing home company of running a kickback scheme. According to the settlement, from 2006 through 2013,  the nursing homes allegedly hired physicians as medical directors in sham positions at its facilities. The physicians performed few or no contractual job duties. The sham positions were essentially disguised payments for referrals to the facilities.

The case is United States of America et al v. Plaza Health Network et al, case number 1:12-cv-20951, in the U.S. District Court for the Southern District of Florida.