Martin & Jones, PLLC
Call today for a Free consultation.

NC Hospital Pays $1.9 Million to Settle Whistleblower Lawsuit

Rex Hospital, based in Raleigh, North Carolina, has agreed to pay the federal government $1.9 million to settle Medicare fraud charges. The qui tam (or “whistleblower”) lawsuit alleged that hospitals were keeping Medicare patients overnight unnecessarily following a back procedure known as “kyphoplasty.” The action alleged hospitals encouraged overnight stays solely to boost the hospital’s Medicare revenues when the procedure can often be done safely and at much lower cost on an out-patient basis. The settlement with Rex Hospital follows an earlier settlement between Presbyterian Orthopedic Hospital in Charlotte with the federal government for $637,872.

Kyphoplasty is a procedure employed for treatment of certain spinal compression fractures, such as those resulting from osteoporosis. The procedure is minimally invasive and involves expanding the compressed vertebra to create a cavity into which bone cement is injected. The procedure generally takes about an hour to complete. The vast majority of patients are able to walk around within just a few hours of the procedure.

Medtronic Spine, LLC is the company which sold the equipment and materials used to perform kyphoplasty and advised hospitals on billing practices for the procedure. Medtronic Spine was formerly known as Kyphon, Inc. The whistleblower lawsuit against Rex was filed by two former Kyphon employees.

In most instances, whistleblowers who bring qui tam lawsuits are awarded 15 to 25 percent of the total amount recovered by the government. The settlements with Rex and Presbyterian Hospital highlight the importance of whistleblowers, often current or former employees of a wrongdoing company, in helping the government combat Medicare and Medicaid fraud. Qui tam or whistleblower suits are brought by individuals on behalf of the government to recover money that the government should not have had to pay.

No Comments

Leave a comment
Comment Information


Contact US Get Help Now

Send us an email or call us today at 800-662-1234 to speak with an attorney about your claim or to arrange a free consultation. It costs nothing to call and there is no obligation. In fact, we are not paid until your case is resolved. Se habla español. If you are unable to travel to one of our offices in Raleigh, Durham and Wilmington, we will meet with you at your location.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Raleigh Office
410 Glenwood Avenue
Suite 200
Raleigh, NC 27603

Toll Free: 800-662-1234
Phone: 919-821-0005
Raleigh Law Office Map

Wilmington Office
1213 Culbreth Drive
Suite 121
Wilmington, NC 28405

Toll Free: 800-662-1234
Phone: 910-256-4005
Wilmington Law Office Map

Durham Office
302 East Pettigrew Street
Suite 330
Durham, NC 27701

Toll Free: 800-662-1234
Phone: 919-544-3000
Durham Law Office Map