Health Care Fraud

Bruce Moilan is $5.5 million richer because he blew the whistle on South Texas Health Systems in a qui tam suit. San Antonio Express-News (10/31, Brezovsky) The False Claim Act prohibits hospitals from paying doctors for patient referrals. Reason being the independent judgment of the doctor is compromised if he has a financial stake in sending patients to a particular hospital. Even so the practice is rampant even though it exposes the hospital and doctors to substantial penalties. The kick backs are often disguised as payments for other services or given in the form of reduced rent or other favors. Reigning in this type of situation will help reduce health care costs without sacrificing the quality of health care or the rights of patients.