A Florida ASC's former business office manager has filed a whistleblower lawsuit against the facility and its corporate partner, accusing them of defrauding Medicare through kickbacks for physician referrals.

The Treasure Coast Center for Surgery in Stuart, Fla., and Brentwood, Tenn.-based Meridian Surgical Partners, its majority owner, deny wrongdoing and have filed a motion to dismiss the case.

In the civil action, filed in federal court in Nashville, Tenn., Thomas Reed Simmons alleges that the ASC and management firm defrauded Medicare of an estimated $100 million. Mr. Simmons, who managed the ASC's business office from May 2008 to September 2011, explains in court records that the defendants' distributions to physician-owners were intended as improper compensation for referrals. As such, they ran afoul of the federal Anti-Kickback Statute. Since the referrals included many Medicare payments, the distributions also violated the federal False Claims Act, the suit alleges.

In addition, reports Mr. Simmons, the defendants - whose actions are not exempted by the statute's "safe harbor" - offered the highest-referring physicians the opportunity to buy ownership shares at a discount. In the lawsuit, which federal prosecutors have declined to join, Mr. Simmons is seeking a jury trial, financial restitution and (in accordance with federal whistleblower law) a share of any recovered funds.

Meridian, which owns and operates 17 ASCs nationwide, and Treasure Coast counter that Mr. Simmons's allegations are false. Their physician-owner distributions, they argue, are issued strictly in accordance with equity percentages. They also point out that Mr. Simmons was terminated from the business office manager position for allegedly misappropriating funds.

On February 13, the defendants filed a motion to dismiss the case, citing insufficient evidence for the case to proceed. The court has ruled that any further pre-trial activity will await the plaintiff's response to, and the eventual result of, that motion.

Mr. Simmons's attorney, Jonathan Kroner, said he views motions to dismiss as routine, early steps in nearly every false claims case. An attorney for the defendants did not immediately respond with comment.

David Bernard