In 2013, a False Claims Act (“FCA”) complaint against Vanderbilt Medical Center (“VUMC’) was unsealed in Federal Court in Nashville, Tennessee. The complaint, originally filed by doctors-turned-whistleblowers, accused the hospital of deceptive billing practices dating back to the 1990s.
One of the plaintiff-doctors was appointed to the hospital’s compensation committee, which is how he learned of the deception. Another alleges that he was summoned to an operating room to discover an unsupervised student nurse anesthetist treating a sedated patient undergoing open-brain surgery.
Earlier this month, federal prosecutors announced the University agreed to pay $6.5 million to settle allegations of wrongdoing without incurring further criminal or civil liability.