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False Claims Act Attorney: Settlement Involving Tacoma Company Sound Physicians

As attorneys that represent individuals who file suit under the False Claims Act on behalf of whistle blowers, we wanted to advise that a Tacoma company known as Sound Physicians has agreed to pay $14.5 million dollars to settle an over-billing lawsuit.  Sound Physicians provides doctors to some 70 hospitals in 22 states.

Former employee and whistle blower, Craig Thomas, filed a lawsuit under the False Claims Act alleging that Sound Physicians submitted claims to Medicare and other federal programs that exaggerated the seriousness and extent of the work they performed on patients.  As a result of the $14.5 million dollar settlement, Mr. Thomas will receive a $2.7 million dollar Relator fee out of the settlement proceeds.

In the original 2008 Complaint, Mr. Thomas alleged that the company paid its physicians and executives based on the amount of the fees they generated.  That system, he claimed, was an incentive for physicians to upgrade their claims for payment to higher levels to increase their own pay.  He said that the company provided physicians little or no training on how to properly their work when submitting forms for government reimbursement.  He alleged that Sound Physicians was aware that many of its claims for reimbursement were not supported by patient medical records, and that the company conducted an internal audit on some of its hospitals in 2008 but did nothing to take any significant corrective action to refund over collections they had discovered resulting from up charging.

If you have confidential information about a fraud against the government in Tennessee, Kentucky, Mississippi, Alabama, Arkansas or another state, please contact us as soon as possible for a free case evaluation.

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Attorneys in our firm and attorneys that we work with on Whistleblower, Qui Tam, False Claims Act cases have represented a host of persons making claims, for violations of federal tax law, Medicare law and more.

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