MultiCare Health System, a hospital and health care system based in Tacoma, Wash., will pay $3.7 million to settle allegations that it knowingly endangered patient safety and falsely and fraudulently billed Medicare, Medicaid and other federal health care programs for unnecessary spinal surgery procedures. The settlement was announced by the U.S. Attorney's Office for the Eastern District of Washington.
"The alleged violations by MultiCare show a wanton disregard for ethics and the medical principle to do no harm," Washington Attorney General Nick Brown said in a statement. "This settlement is a win for patient safety and protecting public dollars to get people necessary health care."
The settlement follows two years of successful litigation by the U.S. Department of Justice and the state of Washington. The case involved Dr. Jason Dreyer, a former licensed physician and MultiCare neurosurgeon, who was allowed to perform unnecessary spinal surgeries despite internal warnings and patient safety concerns. The settlement includes $1.6 million in restitution because of the egregious nature of the violations of federal and state law.
Based on MultiCare's factual admissions and court records, the investigation and resulting litigation showed that MultiCare hired, credentialed and supervised Dreyer while ignoring and failing to take appropriate action on numerous red flags, warnings and specific evidence, according to the Justice Department. As a result, MultiCare increased its own revenue with fraudulently obtained taxpayer money.
"As the voluminous court records of this case demonstrate, MultiCare had direct knowledge of the danger Dr. Dreyer posed to patients, including through reports made by its own medical staff and later from explicit warnings from federal investigators," said Pete Serrano, the first assistant U.S. attorney for the Eastern District of Washington. "MultiCare nonetheless allowed Dr. Dreyer to operate on unsuspecting patients for nearly two years, generating thousands in additional revenue and putting profits before patient safety.
"Today, thanks to years of comprehensive investigation and litigation, MultiCare has been held accountable for its role in defrauding the taxpayers and endangering some of the most vulnerable members of our community."
MultiCare CEO Bill Robertson said the organization stands behind its providers and process and reached a settlement to avoid the cost and distraction of continued litigation.
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