On December 10, 2003, the law firm of Frank, Haron, Weiner and Navarro announced that Metropolitan Hospital, an acute care facility in Grand Rapids, Michigan, and several related entities will pay $6.25 million to settle the federal False Claims Act case of U.S. ex rel. Mary Scott v. Metropolitan Health Corp., Metropolitan Hospital, et al., one of the largest settlements for violation of the provisions of the federal Stark anti-kickback law. Mary Scott of Caledonia, Michigan brought this suit in 2002 against Metropolitan under the Qui Tam provisions of the federal False Claims Act which permit an individual aware of fraud in government contracts, such as Medicare, to bring suit against the wrongdoers, on behalf of the federal government, to recover the amounts wrongfully obtained from the Treasury and the taxpayers.
Ms. Scott, a former Senior Vice-President of Metropolitan, claims that she was terminated by Metropolitan in January of 2003 in retaliation for investigating and bringing forward to MetropolitanÃs Board of Directors the allegations which formed the basis of the suit and settlement. Metropolitan suspended Ms. Scott, and ultimately fired her, after she told Metropolitan's legal counsel and other officials that she was about to report the fraudulent conduct at issue to the government. These continuing retaliation claims are pending in the United States District Court for the Western District of Michigan and have yet to be resolved. They are brought under the whistleblower protection/anti-retaliation provisions of the False Claims Act. Ms. Scott will seek all relief to which she is entitled for the destruction of her career including, but not limited to, double back pay, future pay, compensation for special damages including the humiliation and mental anguish sustained because of the termination, discrimination and retaliation, interest, attorney fees and litigation costs, plus reinstatement to her former position.