December 3, 2019 - Posts

Former Owners of Franklin-Based Health Clinic Pay $800,000 to Resolve False Claims Act Lawsuit Filed by Barrett Johnston Martin & Garrison, LLC

The State of Tennessee has reached an $800,000 resolution of a qui tam (i.e. whistleblower) lawsuit with Dr. Ray White and other members of his family, who had previously controlled and operated the Franklin-based clinic ProHealth Rural Health Services, Inc. (“ProHealth”).  This lawsuit was initiated by attorneys Jerry Martin and Seth Hyatt of Barrett Johnston Martin & Garrison, LLC on behalf of whistleblower client David Stallings, who had previously served as the chief operating officer for ProHealth.  In light of the Settlement and the agreement of the parties, the United States District Court for the Middle District of Tennessee dismissed the lawsuit yesterday.

In the lawsuit, first filed in November of 2017, Mr. Stallings alleged that Dr. White and his family caused ProHealth to violate the Tennessee Medicaid False Claims Act by submitting claims for payment to the State for more TennCare patient visits than actually occurred.  The State of Tennessee intervened in the action in March of 2019.

“This settlement sends a strong message that all companies, big and small, have to play by the rules when they bill Medicaid,” said Seth Hyatt of Barrett Johnston Martin & Garrison, LLC.  Hyatt added, “When companies overbill TennCare, it takes scarce taxpayer dollars away from beneficiaries who really need them.  We thank Mr. Stallings for having the courage to take a stand and we thank the Tennessee Attorney General’s Office for all the time and effort they have devoted to pursuing these claims.”

Dr. White and other members of the White Family who were named as Defendants have denied the allegations contained in the qui tam lawsuit and did not admit to liability when they entered into the Settlement Agreement with the State of Tennessee.

Martin and Hyatt focus their practice on representing whistleblowers who wish to come forward and expose fraud on state and federal programs such as Medicare and Medicaid.  The False Claims Act provides a mechanism for whistleblowers to report fraud and share in the government’s recovery.

Barrett Johnston Martin & Garrison, LLC is based in Nashville, Tennessee, but represents whistleblowers all around the country.