New York Downtown Hospital, located in lower Manhattan near New York City’s financial district, will pay $13.4 million to settle two lawsuits pending in the United States District Court for the Eastern District of New York.
The lawsuits entitled United States and New York State ex rel. Gelfand v. Special Care Hospital Management Corporation, et al., CV-02-6079 (EDNY) (LDW) (ETB) and United States and New York State ex rel. Montaperto v. New Parkway Hospital, et al., CV-05-4911 (EDNY) (LDW) (ETB), are a result of allegations from two whistleblowers under the Federal False Claims Act and the New York State False Claims Act. The whistleblowers, Mathew Gelfand, M.D. and Enrico Montaperto, allege that NY Downtown and Special Care Hospital Management Corporation operated an unlicensed drug and alcohol detoxification clinic and engaged in an illegal scheme to pay for the referral of Medicaid and Medicare patients to be treated at NY Downtown. Gelfand and Montaperto have agreed to accept a relator share of 18% of the amount recovered be each the United States and New York State from the lawsuit.
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