St. Peter’s agrees to pay $10.8 million to settle federal investigation

HELENA — The U.S. Department of Justice and St. Peter’s Health have agreed to a $10.8 million settlement over allegations the hospital made to federal health care programs about treatment provided by its former doctor.

Thomas Weiner, an oncologist who worked at St. Peter’s Cancer Treatment Center (now Cancer Care Services), was fired in 2020 after the hospital received numerous allegations about his conduct.

These allegations included failure to accurately document billing for services to government health programs. St. Peter’s then voluntarily reported the alleged misconduct to federal authorities.

According to the Justice Department, Weiner used his position to “order medically unnecessary treatments such as chemotherapy and other infusions, blood tests, imaging and doctor visits” and to “upcode” claims between Jan. 1, 2015, and Dec. 31, 2020, that suggested a higher level of services than were actually provided. U.S. Attorney Jesse Laslovich said at a news conference Tuesday that because Weiner was an employee of St. Peters Health, the hospital was responsible for the false claims.

Laslovich said the largest portion of the settlement amount – $9.98 million – is compensation owed by the hospital to the government programs that paid the false claims, primarily Medicaid and Medicare. The remainder will be paid to the state.

“It’s a significant settlement and a large amount of money, and that’s not lost on all of us,” Laslovich said. “But it reflects the magnitude of the conduct we’ve alleged here.”

The Justice Department filed a civil lawsuit against Weiner in U.S. District Court on Monday, accusing him of health care fraud. Because the case is ongoing, Laslovich said he could not comment further.

In a written statement to the Montana Free Press, Weiner’s attorney denied the allegations against his client.

“Dr. Weiner denied any wrongdoing and claimed that these proceedings were the result of an ongoing employment dispute with St. Peter’s Hospital,” Deanne McClung wrote in an email. “We are confident that when the evidence is presented, Dr. Weiner will be exonerated.”

The U.S. attorney praised St. Peter’s for its initial disclosure and cooperation during the investigation, saying he understood how divided the issue had been in the Helena community.

“It is a community that my wife and I call home. Our two children were born at St. Peter’s Health. All four of us were treated at St. Peter’s Health,” Laslovich said. “Today’s settlement, in my view, is not an indictment of the quality of care provided by St. Peter’s Health and its physicians and staff.”

Speaking at a separate news conference later Tuesday, St. Peter’s Health CEO Wade Johnson acknowledged the hospital’s responsibility, saying the misconduct was an isolated incident that resulted from Weiner’s actions.

“I want you to know that we will continue to invest in our employees and the community as we have done over the past several years,” Johnson said. “We will also continue to manage our finances conservatively and closely monitor our financial performance to ensure our long-term sustainability.”

The hospital has 30 days starting Monday, Aug. 26, to pay the settlement, which Johnson said represents about 7% of its reserves. He said St. Peter’s has been budgeting to repay the money since 2020, so the settlement would not affect its operating funds.

In 2020, Weiner filed a lawsuit against St. Peter’s Health, claiming wrongful termination. A district judge ruled in favor of the hospital last year and dismissed the case, although an appeal of that decision is pending before the Montana Supreme Court.