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July 08, 2021

Akron General Health System in Ohio Agrees to Pay Over $21 Million to Resolve False Claims Act Allegations

Akron General Health System (AGHS), an affiliate of the Cleveland Clinic, will pay over $21 million to resolve allegations under the False Claims Act. This settlement resolves allegations that between August 2010 and March 2016, AGHS paid compensation substantially in excess of fair market value to area physician groups to secure their referrals of patients, in violation of the Anti-Kickback Statute and the Physician Self-Referral Law, and then submitted claims for services provided to these illegally referred patients, in violation of the False Claims Act. The Cleveland Clinic, which took over AGHS in 2015, voluntarily disclosed to the government its actions, put in place by AGHS’ prior leadership. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Beverly Brouse, the former Director of Internal Audit at AGHS, and Ethical Solutions LLC.