Former CFO Advances Fraud Suit Against Arizona Health Provider

A former chief financial officer for Northern Arizona Healthcare Corp. may continue to argue that the company’s overpayment to acquire a surgery and rehabilitation services center constituted a kickback in violation of the False Claims Act, a federal district court said.

Whistleblower Gregory Kuzma contends that NAHC made an unlawful kickback because it knew the true value of Summit Surgery and Recovery Care Center Inc. was between $8 and $10 million, but paid $25 million to induce Summit to provide future business and reward it for past business.

A jury could find a causal link between the alleged overpayments from ...