A 1 minute read
Oct 9, 2019 2:29:56 PM

The Austin Chronicle reports that the U.S. Department of Justice (DoJ) filed suit on September 25, 2019, against the Lakeway Regional Medical Center and several of its founding investor-administrators, alleging that the group defrauded the U.S. Dept. of Housing and Urban Development (HUD) in a mortgage loan transaction that eventually cost the agency $172 million. The lawsuit follows a DoJ June 2019 settlement with a separate group of seven investors, for which they 'agreed to pay the U.S. $1.1 million to resolve allegations that they violated the False Claims Act.' The DoJ has named Surgical Development Partners LLC, SDP of Austin Enter­prises LLC, G. Edward Alexander, Frank Sossi, and John Prater in the lawsuit. In 2016, Lakeway Regional sold its interests to Baylor Scott & White Health for $72 million.

Not a Definitive Healthcare newsletter subscriber?

Sign up to receive our latest news and blogs right in your inbox

Sign up for our newsletter

Continue Reading