Eye Doctor Fails to Revive Kickback Claims Against Colleague

Oaklawn Hospital in Michigan and the owner of an ophthalmology practice stopped a whistleblower’s bid to reinstate a False Claims Act suit alleging a kickback scheme to defraud Medicare and Medicaid, the Sixth Circuit affirmed Tuesday.

Whistleblower Shannon Martin, also an ophthalmologist, worked for defendant Darren Hathaway at South Michigan Ophthalmology PC, before unsuccessfully seeking a position with Oaklawn Hospital. Martin alleged that the defendants engaged in a kickback scheme under which Oaklawn declined to hire Martin in return for Hathaway’s promise to continue sending surgery referrals from the local community to Oaklawn.

A Michigan federal district court properly dismissed ...