Member Directory
Member Directory

Texas Hospital and Ex-Managers Pay $16.4M in False Claims Settlement

Blurry photo of a patient in a hospital room lying in bed

Lakeway (Texas) Regional Medical Center and its former managers agreed to pay more than $16.4 million to resolve two separate False Claims Act lawsuits, the U.S. Justice Department said Sept. 28. 

The medical center will pay $13.6 million and co-defendants will pay $1.8 million to resolve allegations of fraudulently obtaining and misusing federal loans. The co-defendants, Surgical Development Partners, Surgical Development Partners of Austin Enterprises, and G. Edward Alexander, Frank Sossi and John Prater, assisted in the development and management of the hospital.

In the case involving fraudulent loans, the Justice Department alleged that when applying for a mortgage loan from the Federal Housing Administration, the defendants made false statements and omissions to overstate physician support and understate other credit risks. Due to those statements, the hospital received the loan under false pretenses, prosecutors said. 

Read the source article at Becker's Hospital Review

Contact Us Today

Read More Legal News

The National Trial Lawyers White Logo for Footer
© Copyright 2022, All Rights Reserved | National Trial Lawyers
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram