Dignity Health to Pay Settlement in Fraud Case

November 2, 2014 6:31 AM

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Dignity Health, previously known as Catholic Healthcare West, a three-state chain of hospitals based in San Francisco, California has agreed to pay $37 million to the government to settle a claim that it fraudulently overbilled the military health care program Tricare and Medicare over a period of years. Dignity Health said that by settling the case it was avoiding the potential cost of ongoing litigation, not admitting to any wrongdoing.

The case came to light due to a whistle-blower lawsuit brought by former employee Kathleen Hawkins in San Francisco which led to a federal investigation beginning in 2009. Hawkins will receive $6.5 million as part of the settlement. According to the Justice Department the overbilling occurred with e...

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