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Home False Claims-Qui Tam

Healthcare Company and Owner to Resolve FCA Allegations; Two Whistleblowers to Receive Awards

Ana PopovichbyAna Popovich
January 29, 2022
in False Claims-Qui Tam
Reading Time: 2 mins read
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Clayton Deardorff and his company Stepping Stones Healthcare, LLC (SSH) will pay $589,000 to resolve allegations that they violated the False Claims Act. According to a U.S. Department of Justice press release, two whistleblowers, Mitchell Monsour and Stephen Vaughan, alleged in a qui tam whistleblower lawsuit that Deardorff and SSH were engaged in a kickback scheme. For their role in the case, the two whistleblowers will receive an award of $159,000.

Monsour and Vaughan alleged that “Deardorff and SSH submitted, or cause[d] to be submitted, false claims for payment to the Medicare Program as a result of a kickback arrangement with Franklin County Memorial Hospital…for the recruitment and referral of intensive outpatient therapy (IOP) patients.” Franklin County Memorial Hospital is a Mississippi Critical Access Hospital (CAH), which are Medicare-designated facilities “limited to 25 beds that operate in medically underserved areas.” According to the press release, “Medicare exempts CAHs from [a] fixed prospective payment system” to “encourage hospital coverage in rural, underserved areas.” Medicare also exempts the CAHs and “reimburses 101% of actual allowable costs of providing Medicare beneficiaries with outpatient, inpatient, laboratory, ambulance, and post-acute care services.”

Allegedly, Deardorff and SSH engaged in a “monthly fixed fee payment arrangement” as part of the kickback scheme. The whistleblowers also allege that “beginning in 2010 Deardorff and SSH illegally charged Franklin County Hospital 10% of gross charges billed for IOP services,” or “deferred fees.” These deferred allegedly “constitute illegal remuneration in exchange for the recruitment and referral of IOP patients.” The press release adds a reminder that “[t]he FCA claims settled are allegations only, and there has been no determination of liability.”

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At the end of 2021, WNN compiled a list of standout False Claims Act cases and settlements that involved qui tam lawsuits throughout the year. There were several healthcare cases in 2021 that led to big settlements: check out that article here.

Read the DOJ press release here.

Read more False Claims Act/qui tam whistleblower news on WNN.

Tags: False Claims / Qui TamFalse Claims ActFalse Claims/Qui TamQui Tam
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Ana Popovich

Ana Popovich

Ana Popovich is a contributing editor with Whistleblower Network News, where she writes about breaking whistleblower news, healthcare fraud whistleblowers, and Covid-19 fraud whistleblowers. Ana has a B.A. in English from Georgetown University. While at Georgetown, she was the marketing chair of an affinity group and wrote content for the McDonough School of Business’ Business for Impact program. In 2018, Popovich was a public interest legal intern at the whistleblower law firm Kohn, Kohn and Colapinto. 

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