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Cookeville Regional Medical Center resolves false claims allegations

Cookeville Regional Medical Center (CRMC) was involved in a multi-year investigation by the United States Department of Justice and the State of Tennessee into allegations that CRMC’s violated the Anti-kickback Statute and the Stark Law. The government’s investigation stemmed from a lawsuit brought by a former employee of CRMC pursuant to the qui tam provisions of False Claims Act. Following extensive negotiations, the government agreed to a very favorable settlement that departed from the government’s typical calculation of damages and was for far less than the total value of the claims at issue. The government also agreed to dismiss all remaining claims in the whistleblower’s complaint pursuant to its inherent authority under 31 U.S.C. 3730(c)(2)(A).

Waller represented CRMC in the investigation. By actively engaging with the Department of Justice prosecutors, Waller was able to narrow the government’s investigation to a single co-management agreement with an employed cardiology group, despite much broader allegations brought by the qui tam whistleblower.

For more information, see media coverage here and here.

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