Justice Department: Major oncology group violated False Claims Act, will pay $26 million

By Mark Iandolo | Dec 21, 2017

WASHINGTON (Legal Newsline) — The U.S. Department of Justice announced Dec. 12 that 21st Century Oncology Inc. and certain subsidiaries will pay $26 million after allegations of False Claims Act violations.

“The Justice Department is committed to zealously investigating improper financial relationships that have the potential to compromise physicians’ medical judgment,” said acting assistant attorney general Chad A. Readler of the Justice Department’s Civil Division.  “However, we will work with companies that accept responsibility for their past compliance failures and promptly take corrective action.”

21st Century Oncology, in Fort Myers, Florida, owns and operates subsidiaries throughout the United States. The company is focused on integrated cancer care, and its physicians are often radiation oncology, medical oncology and urology specialists.

According to the Justice Department, 21st Century Oncology self-disclosed the submission of false attestations regarding electronic health records software. Additionally, the company also allegedly violated the physician self-referral law, which is known as the “Stark Law.”


“This settlement represents our office’s continued commitment to ensuring compliance with important federal health care laws,” said acting U.S. attorney Stephen Muldrow of the Middle District of Florida.  “We appreciate that 21st Century Oncology self-reported a major fraud affecting Medicare, and we are also pleased the company has agreed to accept financial responsibility for past compliance failures.”

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