Catholic Health System Settles Medicare Violations

New York’s Catholic health care system has reached a $3.3 million settlement over allegations of breaching federal Medicare reporting laws.

The U.S. Attorney’s Office for the Western District of New York stated in a press release that the health system is accused of “willfully filing false claims” with Medicare, which violates federal regulations.

The allegations suggest that the Catholic hospital network was not complying with laws that prohibit healthcare providers from receiving Medicare payments for services referred by physicians with financial ties to them.

Prosecutors asserted that the health provider had financial arrangements with non-employee physicians, who subsequently referred services like lab tests, hospital treatments, and medical supplies to the Catholic Health System and affiliated hospitals.

“The Stark Law aims to safeguard Medicare by ensuring that financial incentives do not influence physician referrals,” explained U.S. Attorney Michael Digiacomo, adding that his office is dedicated to holding healthcare providers accountable for such practices.

The settlement doesn’t imply any admission of guilt by the Catholic health system. “The settlement only pertains to a complaint, with no decision of liability,” the press release noted.

Initial scrutiny of these alleged violations stemmed from Gary Tucker, a former executive within the Catholic Health Systems Network. According to whistleblower regulations, Tucker will receive a portion of the settlement funds.

In a statement to CNA, Leonardo Sette Camara, an advisor to the hospital system, mentioned that defending against these kinds of subjective claims imposes an excessive strain on their resources.

“This case wasn’t about the quality of care for patients. By resolving these issues, we can refocus our efforts on delivering top-notch care,” he commented.

This report was updated following a statement from the hospital on May 21, 2025, at 3 PM.