Sanford Health, South Dakota reach settlement in Medicaid case

Published: Nov. 25, 2020 at 4:20 PM CST
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SIOUX FALLS, S.D. (Dakota News Now) - Sanford Health has reached an agreement with the state of South Dakota over Medicaid claims filed in connection to a kickback scheme involving one of the health care provider’s top neurosurgeons.

Attorney General Jason Ravnsborg announced Wednesday that Sanford Health will pay just over $329,000 to the state.

The case stems from a financial scheme involving Dr. Wilson Asfora, a neurosurgeon who allegedly received kickbacks from his use of implantable devices distributed by his phsyician-owned distributorship. Ravnsborg said Sanford Health continued to employ Asfora after it received warnings from other doctors that he was performing medically unnecessary procedures involving the devices in which he had a substantial financial interest.

Sanford Health reached a federal settlement of over $20 million in October of 2019, which resolved federal allegations against the health care system related to the Anti-Kickback statute.

The settlement announced Wednesday fully reimburses South Dakota’s share of alleged Medicaid damages in the case.

Ravnsborg said the settlement is neither an admission of liability by Sanford Health, nor a concession by South Dakota that its “claims are not well founded.”

Sanford Health fired Asfora in 2019.

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