United States Attorney Richard B. Roper
Northern District of Texas

Harris Methodist HEB Hospital to Pay U.S. and Texas More Than $1.9 Million
to Resolve Allegations it Received Payments Due to Improper Physician Referrals

DALLAS — Harris Methodist HEB Hospital (HEB), located in Bedford, Texas, has agreed to pay the U.S. and State of Texas $1,944,089 to resolve allegations that it violated the civil False Claims Act, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. HEB allegedly violated the civil False Claims Act by submitting improper claims for payment to the Medicare and Texas Medicaid programs between March 15, 2004, and September 1, 2005, for orthopedic-related items and services. By entering into such a settlement, HEB does not admit any wrong-doing and denies any liability.

In 2005 HEB’s corporate parent self-disclosed to the Office of Inspector General for the Department of Health and Human Services (OIG) that a physician-lease arrangement HEB discovered during a compliance review potentially violated federal law. The self-disclosure prompted an investigation, during which HEB cooperated fully with the government. Based upon information provided by HEB, and learned during the investigation, the U.S. and Texas alleged HEB was paid by the Medicare and Texas Medicaid programs for orthopedic items and services referred to HEB by a physician group that had received free rent from HEB.

As part of the settlement, HEB also entered into a three-year Certification of Compliance Agreement (CCA) with the OIG. The CCA requires HEB to adhere to certain policies and procedures to ensure compliance with applicable statutes and regulations that govern the use of federal health care funds.

U.S. Attorney Roper praised the joint investigative efforts of the OIG and the FBI. The case was handled by Assistant U.S. Attorney Sean R. McKenna.

###