Search Site
Menu
Lexington Medical Opts to Settle $17 Million Whistleblower Suit

Lexington Medical Center in Columbia, South Carolina, has settled a $17 million lawsuit with one of its former physicians, who had blown the whistle on alleged wrongdoing within the organization.

As part of the settlement, Lexington did not admit fault, but it did allow the organization to avoid further litigation. In a statement, a hospital spokesperson said that none of the issues involved in the lawsuit were related to patient billing or the quality of care Lexington delivered.

Complaint related to inappropriate referrals, Medicare claims

The suit stemmed from allegations made by a former employee-physician, who argued that the medical center violated federal law in submitting improper claims to Medicare and other federal insurance programs. He also claimed that the Lexington required its physicians to send patients to different hospital facilities for additional tests, and that doctors would be paid for these referrals. According to state and federal law, physicians should only make referrals for medical purposes.

The U.S. Department of Justice was also involved in the case. Because of that, the whistleblower could be eligible for 25 to 30 percent of the total settlement amount, with the rest going to the federal government. In other words, the plaintiff could receive up to $5 million dollars in the settlement.

One of the reasons why Lexington may have decided to settle was the experience of Tuomey Hospital in Sumter, South Carolina. That medical center faced a similar whistleblower claim, but opted to fight the U.S. government over the matter for nine years. After spending $15 million on legal fees, Tuomey ended up with a $237 million verdict in a jury trial.

If you have noticed wrongdoing within your business or organization, it is your right to expose it. To make sure you protect your interests during this process, work with a skilled Dallas attorney at Whistleblower Law for Managers.

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra