The Kalispell Regional Healthcare System has agreed to pay $24 million to resolve allegations that they violated the “False Claims Act” by paying physicians more than fair market value.
The DOJ says that between 2010 and 2018, KRH violated the law by paying excessive full-time compensation to more than 60 physician specialists – many of whom worked far less than full-time.
The settlement ends a whistleblower suit filed by Jon Mohatt, the former chief financial officer of the hospital’s Physician Network, in September of last year.
Spokesperson Mellody Sharpton released a statement on behalf of K-R-H:
“Today, I am pleased that we have finally resolved these allegations with the Department of Justice, as the case has been dismissed and the seal was lifted. While KRH continues to strongly disagree with the allegations, we are relieved to put this issue behind us.”