IU Health, provider to pay $18M to settle whistleblower case

INDIANAPOLIS (AP) - State and federal prosecutors say Indiana University Health Inc. and nonprofit health care provider HealthNet Inc. will pay a combined $18 million to resolve a whistleblower lawsuit alleging their financial arrangements violated multiple laws.

They say IU Health provided an interest-free line of credit to HealthNet in part to induce HealthNet to refer its obstetrics and gynecology patients to IU Health's Methodist Hospital in Indianapolis. They say violations of the federal Anti-Kickback Statute and state the federal False Claims Acts occurred between May 1, 2013, and August 30, 2016.

Under the settlement agreement, IU Health and HealthNet each will pay approximately $5.1 million to the U.S. and $3.9 million to the state.

IU Health issued a statement saying it cooperated with prosecutors and that there was no determination of liability.