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ChristianaCare agrees to pay $47.1M to settle whistleblower lawsuit claiming kickbacks

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ChristianaCare agrees to pay .1M to settle whistleblower lawsuit claiming kickbacks


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ChristianaCare will pay $47.1 million to settle a nearly 7-year-old case that started after a whistleblower came forward alleging kickbacks and other violations at Delaware’s largest health system, attorneys representing the whistleblower said Thursday.

This is believed to be the largest False Claims Act settlement in Delaware history and the first in a series of cases that are likely to be brought against other hospitals across the nation. 

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“This case involves a revolutionary legal theory,” said Dan Miller of Walden Macht & Haran — the law firm representing the whistleblower, Ronald Sherman. “To my knowledge, this is the first FCA settlement — ever —based on a hospital allegedly providing private physicians with free services in the form of hospital-employed nurse practitioners and physician assistants. Any other hospital in the country which operates under that model that led to this settlement should consider changing its practices immediately, or risk a whistleblower lawsuit.”

Shane Hoffman, ChristianaCare communications director, said the settlement does not include admission of liability.

He added that following a favorable judgement by the court, which dismissed a portion of the claims, they were pleased to settle the matter as they focus on meeting the needs of communities they serve.

“Our number one priority is to provide the best possible care to every patient we serve,” Hoffman said.

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‘Kickback scheme’

The settlement aims to bring an end to charges of a “kickback scheme” registered by the health care systems’ former chief compliance officer, Ronald Sherman, who ended up filing fraud claims in a federal False Claims Act civil lawsuit in the U.S. District Court for Delaware. The False Claims Act allows an individual to file charges of taxpayer fraud on behalf of the government and then share in any resulting settlement.

Sherman filed the suit in 2017, three years after he was fired by ChristianaCare’s then-newly appointed chief executive, Janice Nevin. She remains as ChristianaCare’s president and CEO.

Sherman’s suit, which was unsealed more than a year after it was filed, charges that between 2010 and 2014 the hospital system engaged in a “kickback scheme,” by allowing doctors from a private practice called Neonatology Associates to bill insurances, primarily Medicaid, for care that had been provided by the hospital’s own staff.

In exchange, Christiana Care received lucrative patient referrals from those physicians, the suit claims.

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The suit landed at a time when the hospital company was expanding its profitable maternity wing and vying to become a medical research hub in the Mid-Atlantic region. Its campus in Stanton houses the only high-risk delivering hospital in Delaware.

On Thursday

ChristianaCare Health Services has agreed to pay $42.5 million to the United States and the State of Delaware and $4.6 million to the attorneys representing Sherman to settle the case. Sherman’s share of the settlement is more than $12 million.

“It appeared to us that the provision of free services was partly the result of a nationwide scandal involving overworked medical residents,” Miller said.

In 2003, the Accreditation Council for Graduate Medical Education, which is the body responsible for accrediting physician training programs in the United States, adopted new rules that limit the number of hours hospitals could require medical residents to work, he said.

“To fill the gap left behind by residents, many hospitals hired mid-level providers such as nurse practitioners and physician assistants,” Miller said. “At ChristianaCare, we alleged that services performed by mid-level providers were billed for by private attending physicians who were in a position to make future referrals to the hospital.  

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“Put differently, we alleged that ChristianaCare paid kickbacks to the private physicians in the form of free employees.“  

Hoffman said the use of advanced-practice clinicians (APC) to coordinate and provide continuity of care throughout their service lines is essential to enabling the level of high-quality, safe care that we provide.

“We will continue to ensure that our use of APCs to support the quality and safety of the care we provide to our patients is in accordance with all current guidance and requirements,” he said.

“At ChristianaCare, we serve our patients with love and excellence,” he added. “As a nonprofit health care organization with a mission of service to our community, we are committed to providing high-quality, safe care to everyone we serve, especially for critically ill newborns in our [neonatal intensive care unit].”

Send tips or story ideas to Esteban Parra at (302) 324-2299 or eparra@delawareonline.com.

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More: Students with hearing loss in Delaware face ‘systemic discrimination,’ ACLU-DE claims



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Delaware

Delaware State To Add A D1 Women’s Wrestling Program – FloWrestling

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Delaware State To Add A D1 Women’s Wrestling Program – FloWrestling


Below is a press release from Delaware State about adding a Division I wrestling program. in the fall of 2025. Delaware State Hornets will be the fifth program to offer D1 women’s wrestling.

DOVER — HBCU Wrestling and Delaware State University (DSU) are proud to announce the historic launch of the first-ever Division I women’s wrestling program at an HBCU, a major milestone made possible by a generous $1.25 million gift from HBCU Wrestling. This initiative represents more than just an expansion in athletics; it is a commitment to equitable opportunities, reflecting both institutions’ dedication to creating pathways where student-athletes can thrive.

“The partnership with HBCU Wrestling gives our women student-athletes a platform to compete, grow, and inspire others. We are excited for this new chapter and the impact it will have for years to come,” said Dr. Alecia Shields-Gadson, Director of Athletics. 

The Delaware State University athletics department will immediately begin the search for a head coach. The first season for the women’s wrestling program is set to begin in the Fall  2025.  

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Founded in 2021, HBCU Wrestling has made it its mission to bring wrestling back to HBCUs, giving young athletes the chance to excel in sports while being empowered as leaders. This movement began with a $2.7 million gift to Morgan State University, leading to the revitalization of its wrestling program. With the launch of DSU’s women’s team, HBCU Wrestling continues its mission to increase representation and opportunity in collegiate sports.

Restoring Tradition, Advancing Equity

Delaware State University’s history in wrestling spans decades, and it was the last HBCU to offer a Division I wrestling program before it was discontinued in 2009 due to financial challenges. The closure of DSU’s program mirrored a broader trend, as many universities—both HBCUs and others—faced similar pressures that led to the elimination of wrestling programs nationwide. Now, with HBCU Wrestling’s strategic support, DSU is not only reviving its program but doing so in a way that aligns with Title IX standards and promotes gender equity. This new program opens the doors for DSU to develop a sustainable, competitive team where young women athletes can reach their full potential.

“This announcement is not only about wrestling; it’s about expanding access to life-changing opportunities,” said Jahi Jones, Executive Director of HBCU Wrestling.  “At HBCU Wrestling, we’ve built a foundation that now allows young women to succeed, thrive, and lead while still being in an environment where they feel seen, valued, and loved. This program aligns with the incredible growth of women’s wrestling nationwide, and I look forward to a strong, lasting partnership with Delaware State University that will inspire and empower future generations.”

A New Era for HBCU Athletics

DSU President Tony Allen highlighted the significance of this partnership. 

“Delaware State University is proud to take this historic step in advancing opportunities for women in sports,” said Tony Allen, President of DSU. “We’re also thankful for our partnership with HBCU Wrestling, which will give our student-athletes the tools and environment they need to grow and succeed. This program will be a cornerstone of our commitment to fostering growth, diversity, and excellence in athletics.”

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Toccara Montgomery, the first Black woman to win a World Championship medal for the United States and to represent the U.S. in Olympic wrestling, shared her thoughts on the program “Seeing Delaware State launch the first-ever Division 1 women’s wrestling team at an HBCU is a powerful moment that feels like the realization of a dream. When I held a camp at DSU not long ago, I saw firsthand the excitement and potential in the athletic staff and community. This new program is more than just an opportunity—it’s a historic step forward that will inspire young women of color to chase their passions and know they belong at the highest levels of sport.”

As DSU’s women’s wrestling program begins, HBCU Wrestling remains focused on building a legacy of inclusion, competitive excellence, and community impact for years to come.

About Historically Black Colleges and Universities Wrestling Initiative:

Historically Black Colleges and Universities Wrestling Initiative (HBCUW) seeks to establish and restore wrestling to America’s historically black colleges and universities and expand access to opportunities created by wrestling for the black community so as to advance social justice and produce black wrestlers and leaders who have the potential to change the trajectory of their families, community, and country. Through the establishment and restoration of wrestling programs at HBCUs, we aim to expand access to the invaluable life skills, networking opportunities, and career pathways that the sport offers.

About Delaware State University:

Delaware State University was founded in 1891 and is accredited by the Middle States Commission on Higher Education. Its main location is in Dover, yet DSU offers courses throughout the state of Delaware. Learn more at www.desu.edu





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Delaware

Pennsylvania judge strikes down permits for new Delaware port terminal

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Pennsylvania judge strikes down permits for new Delaware port terminal


From Philly and the Pa. suburbs to South Jersey and Delaware, what would you like WHYY News to cover? Let us know!

Delaware’s port expansion plans are at risk after a Pennsylvania judge sided with Philly ports in lawsuit.

When the state of Delaware announced in May it would spend nearly $200 million to build the $635 million Edgemoor container terminal at the Port of Wilmington, it said the investment could create nearly 6,000 new jobs. But a recent court decision invalidating key permits could jeopardize the entire project. The state is partnering with private port operator Enstructure on the new facility.

U.S. District Judge Mark Kearney of the Western District of Pennsylvania ruled that the U.S. Army Corps of Engineers “arbitrarily and capriciously departed from its own procedures” in issuing the permits and ordered a closer, more in depth review of the project.

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The Philadelphia Regional Port Authority (Philaport) and ports affiliated with Holt Logistics Corp., whose affiliates operate terminals in Philadelphia and South Jersey, sued the U.S. Army Corps of Engineers after it had approved Delaware expansion plans. They argued that the new Edgemoor port would divert shipping to Delaware from Philadelphia.

Holt Logistics CEO Leo Holt said Delaware wants to take advantage of the main channel deepening channel it once tried to thwart after it was completed with no cost to the First State.

“I think it’s actually a lot of effrontery to come up with a plan and sort of thumb your nose at the [non] federal sponsor, which was the state of Pennsylvania,” he said. “Delaware actually went to court to stop the [main] channel deepening.”

A spokesperson for outgoing Gov. John Carney said he’s disappointed by the court ruling.

“Quite frankly, we’re frustrated with the impediments that have been put in place by our competitors in Philadelphia,” Director of Communications Emily Hershman said. “While the state of Delaware was not involved in this case, we know the teams are already working quickly to get the permits back on track and move this important project forward.”

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The Diamond State Port Corporation, the entity that manages the port for the state, held a special board meeting last week to discuss the judge’s ruling. However, most of the meeting was held in executive session, outside of public view.

Board Chair and Delaware Secretary of State Jeffrey Bullock said during open session he was still confident of the plan.

“This project has a huge amount of support in the state of Delaware,” he said. “We are not going to be intimidated by people from out of state who are acting in their own self interest.”



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3 arrested for allegedly abusing special needs children at Delaware elementary school

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3 arrested for allegedly abusing special needs children at Delaware elementary school


SMYRNA, Delaware (WPVI) — Authorities in Smyrna, Delaware, have arrested three people in connection with the alleged abuse of nonverbal children with autism at an elementary school.

The investigation began in February 2024 when the Smyrna School District reported possible professional misconduct at Smyrna Elementary School.

Video in the player above is from a previous report.

According to Smyrna police, the investigation revealed that employees working in a special needs elementary classroom would allegedly throw objects at students, yell at them, and call them names.

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31-year-old Makayla Lomax from Smyrna

One suspect, 31-year-old Makayla Lomax from Smyrna, is accused of striking a student in the face and spraying the same student with a water bottle as a form of discipline.

Investigators also believe that in the fall of 2022, two employees forced a special needs student to drink hot sauce and eat hot Takis. The student had a known digestive disability, according to police.

26-year-old Marrisa Johnson from Smyrna

26-year-old Marrisa Johnson from Smyrna

Police say 26-year-old Marrisa Johnson from Smyrna and 21-year-old Morgan Donahue from Clayton were the employees involved in that incident.

Johnson has been charged with 10 counts of endangering the welfare of a child.

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Lomax was charged with third-degree child abuse, offensive touching, and nine counts of endangering the welfare of a child.

21-year-old Morgan Donahue from Clayton

21-year-old Morgan Donahue from Clayton

Donahue was charged with one count of endangering the welfare of a child.

Police have not released any further details on this investigation. Anyone with information is asked to contact the Smyrna Police Department.

The Smyrna School District released the following statement on this incident:

“In February 2024, the Smyrna School District reported alleged wrongdoing by staff at Smyrna Elementary School to the Division of Family Services and the Smyrna Police Department. We have worked diligently with our law enforcement partners throughout the investigation. The community and school system have been patiently waiting the conclusion of those extraordinary efforts. We appreciate the diligence and thoroughness of law enforcement in bringing closure to this troubling matter.

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The relevant employees have not been in the presence of our students since the district was made aware of the alleged wrongdoing. Most individuals alleged to be involved no longer work for the District. With regard to the remaining employees, the District will honor employee privacy rights with regard to separation of employment, and we will make our reports to the Department of Education’s Division of Licensure and Certification.

Student safety is of paramount importance to the Smyrna School District. We will continue to evaluate and improve all aspects of school safety. We will also continue to support our school community through this difficult time.”

Copyright © 2024 WPVI-TV. All Rights Reserved.



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