Whistleblower Lawsuit Against Tenet Healthcare Fraud Results in $368 Million Settlement

In 2009, Wilbanks & Gouinlock (W&G) initiated a major False Claims Act case against Tenet Healthcare Corporation, one of the largest hospital companies in the U.S. The case, filed on behalf of whistleblower Bill Williams, an Army veteran and former hospital finance executive, was settled in 2016 for $368 million. Mr. Williams received a portion of the civil settlement funds. Click here for the W&G press release.

Illegal Referral Scheme & Medicaid Fraud Allegations

The lawsuit alleged that Tenet and four of its hospitals in Georgia and South Carolina engaged in an illegal kickback scheme with a business called Clinica de la Mama, which operated walk-in obstetric clinics for undocumented Hispanic women.

According to the complaint:

• Tenet allegedly paid Clinica to locate and refer pregnant, undocumented women to its hospitals for childbirth.
• Since labor qualifies as an emergency condition, Emergency Medicaid covered the delivery costs. However, paying for Medicaid patient referrals violates the federal Anti-Kickback Statute and Georgia state laws.

These allegations placed Tenet Healthcare fraud under significant scrutiny, prompting legal action at both the state and federal levels.

Government Joins the Case

Recognizing the significance of the allegations, the State of Georgia joined the lawsuit in 2013, followed by the U.S. Department of Justice in 2014. Tenet was represented by top law firms Alton & Bird, LLP in Atlanta and Latham & Watkins, LLP in Washington, D.C., and Los Angeles.

The case became one of the most significant Tenet Healthcare fraud settlements, reinforcing the importance of whistleblower actions in exposing corporate misconduct.

Criminal Investigation & Additional Restitution

The evidence provided by W&G and Mr. Williams directly led to a criminal investigation, resulting in an additional $145 million in criminal restitution.

This case underscores the vital role of whistleblowers in exposing healthcare fraud and ensuring accountability in the medical industry.

Report Fraud at No Cost

If you have information about fraudulent practices, contact our office for a free, confidential consultation:

• Fill out our consultation form by clicking here.
• Email us at info@wilbanksgouinlock.com.
• Call (404) 842-1075, ext. 123 or 122.

This article is for informational purposes only and should not be considered legal advice.