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Hospital agrees to settle whistleblower suit for $250K

June 6, 2019

BURLINGTON, Kan. (AP) — An east-central Kansas hospital has agreed to settle a whistleblower lawsuit for $250,000.

The Wichita Eagle reports that the lawsuit alleged that the Coffey Health System lied to the federal government in order to receive at least $3 million in incentives payments it didn’t deserve. The U.S. Department of Justice announced the settlement last week.

The suit, which was filed in 2016, alleged that some misstatements were about compliance with security standards meant to ensure the privacy and security of patient information. The suit also said that the hospital gave the government data that didn’t come from the source it claimed it had.

Wichita attorney Gary Ayers said the Burlington-based health care organization decided to settle to avoid the expense of ongoing litigation — not because it did anything wrong.

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Information from: The Wichita (Kan.) Eagle, http://www.kansas.com

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