Touro Infirmary settles Qui Tam suit for $1.75 Million

A New Orleans Hospital, Touro Infirmary, recently settled a qui tam suit for $1.75 million. According to the Department of Justice, the suit alleged that Touro Infirmary, submitted false claims to the Medicare program.

Involved in the Medicare scheme with the New Orleans Hospital, was Dr. Maria Carmen Palazzo. In previous a Whistleblower Blog post, we mentioned Dr. Palazzo's involvement with fraud in Paxil trials.  According to the recent qui tam case involving Touro Infirmary, Dr. Carmen Palazzo received unlawful payments of $144,000 per year from 2000 to 2004. This was a part of the scheme to get patient referrals to the hospital from Dr. Maria Carmen Palazzo to refer patients to the hospital. According to recent reports,  Dr. Palazzo, was found guilty on 39 counts of health care fraud, including 13 counts arising from her contractual relationship with Touro.

Click here to read more from the Department of Justice, on the False Claims Act settlement from Touro Infirmary.

Supreme Court dismisses Whistleblower Lawsuit

The False Claims Act's "original source" provision requires that relators have direct and independent knowledge of the information on which their allegations are based at all stages of the litigation, the U.S. Supreme Court has ruled.

The Supreme court, voted 6 to 2 in Rockwell v. United States, and said retired engineer James S. Stone can't share in a $4.2 million award he and the U.S. government won in a suit against Rockwell International, which is now a part of Boeing.

Click here to read the full text of the Supreme Court opinion.