In July 2003, Patricia J. Quinnelly, filed a “whistleblower,” or “qui tam” suit against Piedmont Hospital. Quinnelly was a vascular technologist in Piedmont’s F. Levering Neely Vascular Laboratory from 2001 through 2004.
Ms. Quinnelly filed suit under the False Claims Act, 29 U.S.C. § 3729 et seq. That act allows the United States to recover triple damages and civil penalties when false claims are knowingly submitted to government programs.
Quinnelly alleged that “Piedmont Hospital had submitted claims for a physician’s interpretation of some vascular laboratory tests when the physician interpretation, in fact, had not been done. Specifically, Quinnelly alleged that one of the laboratory’s physicians routinely failed to conduct an independent review of the vascular test data, and instead simply signed off on the technicians’ interpretations and proposed diagnoses.” http://www.usdoj.gov/usao/gan/press/2006/06-09-06.pdf
During the investigation of Ms. Quinnelly’s claims, the government discovered that Piedmont Hospital also had failed to execute contractual agreements with the physicians performing services at the vascular laboratory. The Stark law, 42 U.S.C. §1395, a Social Security Act provision, regulates physicians’ referrals to entities in which they have a financial interest.
The United States agreed to dismiss the lawsuit in exchange for $3,039,388.00
“and Piedmont’s acceptance of a Certification of Compliance Agreement entered into with the Department of Health and Human Services, Office of Inspector General. The
Compliance Agreement requires Piedmont to adhere to certain policies and procedures to ensure compliance with applicable statutes and regulations that govern the use of federal health care funds.” http://www.usdoj.gov/usao/gan/press/2006/06-09-06.pdf
Quinnelly received $354,390.00 as her share of the recovery under the settlement.
