Baptist Health System Settles Fraud Allegations for $1.5 Million
Jacksonville’s Baptist Health System Agrees to $1.5 Million Settlement for Alleged Fraud
In a surprising turn of events, Jacksonville’s Baptist Health System, known for its mission to provide hope, healing, and wellbeing to all, has agreed to pay $1.5 million to settle allegations of defrauding the government under the False Claims Act.
The nonprofit, tax-exempt Baptist Health System, which operates seven hospitals across Northeast Florida, the Baptist MD Anderson Cancer Center in Jacksonville, and numerous other medical facilities, was created to serve the medical needs of the community, not to generate profits for shareholders.
The Department of Justice alleges that from Jan 1, 2016, to Aug. 15, 2022, Baptist Health directed its subsidiaries to offer discounts to Medicare patients, regardless of financial need, in exchange for their commitment to use or recommend Baptist Health’s services. This practice violated federal fraud laws and the Anti-Kickback Statute, which prohibits offering payments in exchange for referrals to specific health care services.
In a positive move towards transparency and accountability, Baptist Health voluntarily disclosed the potential violations of federal fraud laws on July 15, 2022, and discontinued the legacy patient discount policies. They also conducted an internal compliance review and provided detailed disclosures to the government, earning credit for cooperating with the investigation.
The settlement, announced on May 3, requires Baptist Health to pay $1.5 million plus interest to the government by May 18, 2024. While the agreement does not admit liability, it highlights the importance of self-disclosure and cooperation in combating health care fraud and protecting taxpayer-funded programs.
This case serves as a reminder of the critical role nonprofit health systems play in providing care to underserved populations and ensuring health care accessibility for all patients, regardless of their financial situation. It also underscores the government’s commitment to holding organizations accountable for defrauding government programs and upholding the integrity of the health care system.