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

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ChristianaCare agrees to pay $47.1M 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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Flatbed used in weapons heist found across street from Delaware gun shop

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Flatbed used in weapons heist found across street from Delaware gun shop


NEW CASTLE COUNTY, Delaware (WPVI) — A vehicle believed to be involved in the burglary of a gun store in New Castle County was recovered on Tuesday, directly across the street from the scene of the crime.

The owner of a gun shop spoke to Action News on Tuesday after his store was burglarized.

He says the Monday morning burglary was nothing short of well-planned and brazen.

“Being right on this highway, in a very secure building, and we’ve got New Castle County Police Headquarters three miles north of us, we’ve got Delaware State Police Troop 2 five miles from us. This was absolutely brazen to even attempt this,” said Bob Miller, owner of Miller’s Guns Center in Wilmington Manor, Delaware.

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Firearms stolen after vehicle drives into gun store in New Castle County

Investigators say the thief started by stealing a flatbed truck from a facility approximately 10 miles away.

A short time later, just before 2 a.m. Monday, the suspect backed the flatbed into the front of the gun store on Route 13.

The shop’s security system notified the police right away, but a witness told authorities what they would be looking for.

“A passerby actually called and said that they saw a flatbed truck backing into the business,” said New Castle County Police Corp. Richard Chambers.

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The thief ended up getting away with an undisclosed number of handguns.

In an odd twist, however, a trail of bricks revealed how the suspect fled the scene down Route 13 southbound.

The flatbed was then recovered more than 24 hours later at a dry cleaner, which was right across the street from the gun shop.

Investigators are now going through surveillance video to determine how, and hopefully why, the suspect returned to the scene without being detected.

Meanwhile, Miller says he is eager for investigators to catch the person responsible.

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“I just didn’t think anything like that would ever happen to us,” he said. “We’ve got a really, really good security system and we’ve got surveillance.”

“Very brazen to do what he did, and that may be what gets him caught,” Miller added.

Sources close to the investigation tell Action News that at this point, investigators believe only one person was involved in this heist.

Surveillance video of the incident has not been released to the media, but it is being reviewed by several law enforcement agencies, including the ATF, the FBI, and New Castle County police.

Anyone with further information is asked to contact the authorities.

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Delaware gun shop heist: Flatbed truck used to slam into store found by police

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Delaware gun shop heist: Flatbed truck used to slam into store found by police


The investigation into a gun store burglary continues as New Castle police locate a truck in connection to the brazen crime, and suspects remain on the loose.

Millers Gun Center on West Jackson Avenue became the target of thieves when several firearms were stolen early Monday morning.

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A witness told 911 that a flatbed truck slammed into the front door of the store while officers were en route to the scene.

They arrived to find the store had been broken into, several firearms had been taken, and the truck was gone.

On Tuesday morning, police say they found the truck behind a business on the 500 block of North Dupont Highway.

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FOX 29 was on the scene as police surrounded the area, which is directly across from the gun shop.

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Police have yet to say if any stolen firearms were recovered, or any additional details in connection to the burglary.

The family-owned business has since put up a temporary door where the truck backed into the store.

 

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Glass to sand: Goodwill of Delaware unveils new recycling machine

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Glass to sand: Goodwill of Delaware unveils new recycling machine


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Goodwill of Delaware and Delaware Counties unveiled a new machine that will turn glass into sand, in turn supplementing a depleting resource and saving hundreds of thousands of pounds of landfill waste.

Three Goodwill stores will now operate a glass pulverizer to recycle donated glass that is deemed unsellable by the stores. The Goodwill of Delaware and Delaware County, Goodwill Industries of the Chesapeake and the Goodwill of Greater Washington will be the recipients of the company’s new initiative, with grant funding from Truist Bank.

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An unveiling event was held May 23 at the Goodwill of Delaware and Delaware County located at 400 Centerpoint Blvd. in New Castle.

How does the machine work?

An estimated 350,000 pounds of glass donated to the Goodwill in Delaware makes its way to the landfill at some point.

“In most stores glass is either broken and can’t be reused or didn’t sell in the store,” said Colleen Morrone, CEO of the Goodwill of Delaware and Delaware County. “Previously we put it in the landfill. But now we’re taking glass here and are able to do something else with it.”

The glass pulverizer, aptly named Sandy, is able to implode shards of glass and revert it into soft sand or gravel that can be further repurposed for other uses. The $86,000 machine is able to accept up to 1.5 tons of glass and convert it to its original form.  

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Three branches of Goodwill stores received the $1 million grant from Truist Charitable Fund to pay for the machines themselves and for sustainable workforce training. Morrone estimated that around 1,500 employees will be trained in using the pulverizer, while also expanding their general sustainability knowledge.

“We can train all of our workforce in all of our retail stores and operations centers in sustainability issues, how to be better stewards for the environment and teaching how to bring sustainability into the workplace so they can utilize it at work and at home,” Morrone said.

Too much glass, not enough sand

Not everything donated to Goodwill can be resold or reused. In fact, a bulk of Goodwill Delaware’s 550,000 annual donations end up in landfills.

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The organization has already begun efforts to reduce textile waste by partnering with the University of Delaware’s Department of Fashion and Apparel Studies to recycle the fibers of unused garments.

Sand is the second-most used natural resource in the world, behind water, according to a UN 2022 report. It’s is also being used at an ever-increasing rate of 6% every year, a rate that could become unsustainable.

For coastal states like Delaware, which is particularly susceptible to sea level rise, sand is heavily used in shoreline restoration projects and erosion control around the coastlines. Delaware’s Department of Natural Resources and Environmental Control oversees dozens of projects per year restoring the coastlines with the sand they need to protect nearby infrastructure.

CHANGES AT DUPONT: DuPont is splitting into 3 companies … again. What does this mean for Delaware?

Multiple dredging projects are also underway to collect sand from the ocean and use it for shoreline control. Morrone hopes that this could be one of the ways the new sand pulverizer machine could be useful to the local community.

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“We have a lot of beaches here in Delaware, so we’re looking at all of our opportunities and trying to find the best for us here to make Delawareans feel good about donating to Goodwill,” Morrone said.

The sand and gravel created with the glass pulverizer can also be used for construction, landscaping, mulching and home gardening projects.  

Molly McVety covers community and environmental issues around Delaware. Contact her at mmcvety@delawareonline.com. Follow her on Twitter @mollymcvety





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