Whistleblowing CFO Collects $6.3 Million in Settlement

High-ranking corporate executives have significant authority, but also a responsibility to do what’s right. It’s been estimated that medical fraud nationwide accounts for $100 billion in losses annually. This type of misconduct takes many forms, and there are cases where chief executive officers, chief financial offers and other high-ranking healthcare company official become aware of illegal activity. How they respond is up to them, but an Indiana case demonstrates how an honest CFO can receive a seven-figure sum by reporting unlawful acts. 

Community Health Network (CHN) agreed to pay $6.3 million to its former Chief Financial Officer and Chief Operating Officer, Thomas Fischer. This settlement resulted from a complaint filed by Fischer alleging that CHN submitted improper Medicare claims. This course of conduct violated the Physician Self-Referral Law, commonly known as the Stark Law. Under this statute, physicians are barred from referring Medicare or Medicaid patients to entities where they or a family member have a financial interest, unless a specific exception applies. There should not be instances where a healthcare professional’s advice is based on their own pecuniary benefit rather than what is best for the patient. 

A Department of Justice investigation found that CHN knowingly submitted Medicare claims stemming from referrals that violated the Stark Law. The violations involved improper financial relationships between CHN and referring physicians, which resulted in significant monetary gains at the expense of federal healthcare programs. Fischer’s whistleblower complaint was instrumental in uncovering the alleged misconduct. Whistleblowers play a vital role in exposing fraud and abuse in federal programs, and the False Claims Act incentivizes such actions by allowing individuals to file lawsuits on behalf of the government and receive a share of the amount collected. 

In situations such as the one involving Fischer and CHN, top executives might be tempted to overlook improper billing and referral practices in order to preserve their job. However, this matter underscores the protections and financial rewards available to whistleblowers who come forward with credible allegations of fraud.

At Kardell Law Group, we represent top executives, and employees at all levels, in various types of whistleblower litigation. When you contact us, we’ll advise you of your legal rights and outline whether you might be entitled to financial compensation for reporting fraudulent activity.