U.S. Attorney Jesse Laslovich announces $10.8 million civil settlement with St. Peter’s Health over False Claims Act misconduct

HELENA — U.S. Attorney for the District of Montana, Jesse Laslovich, today announced a settlement agreement between the federal government and St. Peter’s Health, in Helena, in which St. Peter’s will pay $10,844,201 to resolve allegations that it violated the False Claims Act by submitting false claims for payments to federal health care programs for services performed by an oncology doctor.

U.S. Attorney Laslovich announced the settlement agreement today during a press conference at the U.S. Attorney’s Office in the Paul G. Hatfield Federal Courthouse in Helena.

“One of the purposes of the False Claims Act is to protect the American taxpayer from paying for false claims submitted by health care providers to federal health care programs.  We take these allegations seriously, which is why I am pleased we obtained this settlement agreement that returns almost $11 million to the United States.  Our health care providers simply must submit accurate claims when billing these taxpayer-supported federal health care programs for services.  This settlement would not have been possible without the cooperation of St. Peter’s Health, who voluntarily disclosed the misconduct and cooperated with federal investigators to identify the problem and amount of false billing,” U.S. Attorney Laslovich said.

“Today’s settlement highlights our unwavering commitment to enforcing the False Claims Act and upholding the integrity of federal health care programs,” said Special Agent in Charge Linda T. Hanley, of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “St. Peter’s submission of false claims and its associated compensation practices violated both legal and ethical standards. We will continue collaborating with our law enforcement partners to hold entities accountable, prevent similar violations, and safeguard public funds.”

“VA’s Community Care programs provide veterans and their families critical healthcare services from providers within their own communities,” said Special Agent in Charge Dimitriana Nikolov, of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds.”

The settlement agreement, signed on August 26, 2024, is among the U.S. Department of Justice, the Office of Inspector General of the Department of Health and Human Services, on behalf of the Medicare and Medicaid programs; the Defense Health Agency, on behalf of the TRICARE program; the Office of Personnel Management, which administers the Federal Employees Health Benefits Program (FEHBP), the U.S. Department of Veterans Affairs (VA); the Office of Inspector General of the Railroad Retirement Board (RRB) and St. Peter’s Health.

Under the terms and conditions of the settlement agreement, St. Peter’s is to pay $10,844,201 no later than 30 days after the effective date of the agreement.

The settlement agreement contends that St. Peter’s violated the False Claims Act by submitting false claims for payments to federal health care programs relating to services performed and referred by Dr. Thomas Weiner, an oncologist employed at its cancer treatment center. The government alleged that between Jan. 1, 2015 and Dec. 31, 2020, St. Peter’s, relying on Dr. Weiner’s documentation and certification, submitted claims which were determined to be false. St. Peter’s knew, or should have known, that Dr. Weiner submitted claims for office visits that were coded at a higher level of service than was actually performed or did not meet the requirements of a significant, separately identifiable service when performed on the same day as administration of chemotherapy. Further, St. Peter’s, relying on Dr. Weiner’s documentation and certification, compensated Dr. Weiner with a salary that was based on the false claims, and therefore, caused his salary to be inconsistent with fair market value.

The settlement agreement credits St. Peter’s for voluntarily self-disclosing the misconduct. St. Peter’s also performed and disclosed the results of an internal investigation; disclosed documents beyond existing business practices or legal requirements; identified individuals who were aware of relevant information or conduct; made officers and employees available for interviews; assisted in determining the losses caused by the misconduct; and has enhanced its corporate compliance program.

The U.S. Attorney’s Office’s handled the matter. The U.S. Department of Health and Human Services Office of Inspector General and U.S. Department of Veterans Affairs Office of Inspector General provided investigative support.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

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