The U.S. Department of Justice is investigating Oak Street Health for potentially violating the False Claims Act.
The Chicago-based chain of Medicare clinics said it received a civil investigative demand Nov. 1 from the DOJ requesting documents regarding the provider’s ties to third-party marketers and its practice of providing free transportation to patients.
Oak Street said it will comply with the federal request.
“We endeavor to comply with all legal requirements,” Oak Street said in a filing submitted to the Securities and Exchange Commission. “We have been in the past and may continue to be subject to legal proceedings and litigation, including intellectual property and privacy disputes, which are costly to defend and could materially harm our business and results of operations.”
The news sent Oak Street’s stock tumbling 22%, which only started selling shares to the public last year.
The provider opened its first Chicago center back in 2013, offering primary care services to Medicare beneficiaries. It has since expanded to at least 19 additional states.
Read the full filing here.
Matt joined Chicago’s TriMed team in 2018 covering all areas of health imaging after two years reporting on the hospital field. He holds a bachelor’s in English from UIC, and enjoys a good cup of coffee and an interesting documentary.