Florida medical center pays $1M to settle False Claims Case

FLORIDA – Putnam Community Medical Center of North Florida has agreed to pay $1 million to settle false claims liability related to its former sleep center.

Last week, United States Attorney Roger B. Handberg announced that Putnam Community Medical Center of North Florida, which owns and operated Putnam Community Medical Center, LLC, a 99-bed hospital located in Palatka, Florida, has agreed to pay the United States $1 million to resolve allegations that they violated the False Claims Act.

The alleged violations are related to claims to Medicare and TRICARE in connection with a now-closed sleep center that was alleged to have operated with inadequate physician supervision.

According to the settlement agreement, Putnam Community Medical Center provided diagnostic sleep testing services at its now-closed sleep center, which the United States and the State of Florida allege were not provided with adequate physician supervision as required under certain Medicare coverage determinations and regulations during the period from December 2013 through February 2019.

“Protecting Medicare and TRICARE patients is paramount,” said Handberg.

“This civil settlement demonstrates our continuing commitment to hold accountable those who abuse the nation’s healthcare programs at the expense of the taxpayers.”

The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Willard Revels, a former sleep center employee. Revels sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting private citizens to sue on behalf of the United States for false claims and to share in the recovery.

The Act also allows the United States to intervene and prosecute the action. Revels will receive $300,000 of the proceeds from the settlement with the defendants.

This settlement resulted from efforts by the U.S. Attorney’s Office for the Middle District of Florida, working with the HHS Office of Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney Kelley C. Howard-Allen led the investigation.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. Putnam Community Center of North Florida denies the allegations.