Corporate Compliance

Iasis is target of whistleblower lawsuit

Compliance Monitor, August 22, 2007

Iasis Healthcare could lose millions of dollars as a result of a whistleblower lawsuit just unsealed in U.S. District Court in Phoenix.

The lawsuit, filed in 2005 by Jerre Fraizer, former vice president for ethics and compliance for Iasis Healthcare, details alleged misconduct including:

  • Allowing medically unnecessary procedures, including interventional cardiovascular procedures
  • Leasing space below market value
  • Entering into contracts with doctors for sham directorships for which they did little or no work
  • Other improper incentives and payments to doctors

Under the False Claims Act, Iasis could be required to pay three times the government's losses, plus $5,500 to $11,000 for each false claim. Thousands of Medicare and Medicaid claims by Iasis are covered in the lawsuit.

Franklin, Tenn-based Iasis owns 16 acute-care hospitals and one behavioral health hospital in Arizona, Florida, Louisiana, Nevada, Texas, and Utah.

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