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Beaumont Hospital to pay $84M to resolve overpay charges

August 2, 2018

ROYAL OAK, Mich. (AP) — A Detroit-area hospital will pay $84.5 million to settle U.S. Justice Department allegations over improper pay to eight doctors.

The department said Thursday the settlement resolves allegations that Beaumont Hospital in Royal Oak overpaid the doctors and provided them with free or below-market office space and other incentives so they would refer more patients to Beaumont. The allegations occurred between 2004 and 2012.

Under the settlement, Beaumont paid $82.7 million to the U.S. and $1.8 million to the State of Michigan.

The allegations were first RAISED in four whistleblower lawsuits filed under provisions in the False Claims Act that allow whistleblowers to share a portion of any recovery. The department says the whistleblowers’ share of the settlement hasn’t been determined.

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