Montana hospital settles whistleblower suit over doctor pay

KALISPELL, Mont. (AP) — A federal judge has dismissed a whistleblower lawsuit after a settlement was reached with the Montana hospital accused of paying some of its physicians at above-market rates in exchange for patient referrals to in-house services.

The Daily Inter Lake reports the suit filed last year by Jon Mohatt, Kalispell Regional Healthcare's physician network chief financial officer, was dismissed with prejudice Wednesday in federal court in Missoula.

The suit argued the hospital's practice could have negatively affected patient care.

The hospital has maintained that it did not commit any wrongdoing. It had also set aside $21.5 million ahead of a potential settlement.

Settlement details and case documents have remained sealed at the request of U.S. attorneys, who claimed the documents discuss the government's investigative and settlement processes.