December 04, 2020

Sanford Health Agrees to Pay South Dakota $329K to Settle Medicaid Case

The details of an agreement between Sanford Health and South Dakota to settle an ongoing Medicaid investigation were released on November 25.  The agreement resolves allegations that a Sanford Health neurosurgeon improperly received kickbacks from his use of implantable devices distributed by his physician-owned distributorship, and Sanford was aware of the neurosurgeon’s actions.  The settlement covers all related claims filed between January 2010, and June 2019.  The agreement, which will see Sanford Health pay the state $329,412, is related to an October 2019 settlement agreement between Sanford and the federal government to resolve alleged violations of the federal Anti-Kickback Statute and False Claims Act.  In the settlement with the federal government, Sanford Health agreed to pay $20.25 million, take various remedial actions, and cooperate with the Department of Justice in litigation related to alleged co-defendants.