The federal government has decided to intervene in a 340B-related whistleblower lawsuit involving Methodist University Hospital in Memphis, Tenn.

Feds Take Over Prosecution of Whistleblower Suit Against Tenn. Health System Alleged to Have Paid Cancer Docs Illegally for Referrals that Boosted 340B Profits

The federal government has decided to intervene in a whistleblower lawsuit that accuses a Tennessee health system of paying Memphis-area cancer physicians for referrals that allegedly generated about $70 million a year in profits for the health system from billings on 340B purchased drugs.

According to the whistleblowers’ legal complaint, the funding for the improper payments to doctors at the West Clinic came from Methodist Le Bonheur Healthcare’s (MLH) 340B drug profits from its business agreement with the clinic.

The federal government has decided to intervene in a whistleblower lawsuit that accuses a Tennessee health system of paying Memphis-area cancer physicians for referrals that allegedly generated about $70 million a year in profits for the health system from billings on 340B purchased drugs.

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