In the largest settlement in Medi-Cal history, SCAN, a provider of health care and support services in Southern California for the elderly and disabled, will pay $323.67 million to settle allegations that they failed to provide contractually required financials to the Department of Healthcare Services (“DHCS”). By failing to turn over the financials, SCAN impaired DHCS from revising capitation rates for SCAN. $3.82 million will go towards the Medicare portion of the allegations, which were brought by a former SCAN employee, James M. Swoben in July 2009 under the state and federal False Claims Acts. Mr. Swoben will receive a portion of the $3.82 million. The federal government will receive $129.38 million and the state will receive $190.47 million to resolve the Medi-Cal allegations.
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