Team Health Holdings Inc. (NYSE: TMH), a clinical outsourcing provider in healthcare, on Feb. 6 completed its sale to funds affiliated with global asset manager Blackstone and certain co-investors, according to a filing with the US Securities and Exchange Commission. The transaction is valued at approximately $6.1 billion. Team Health operates healthcare staffing firm D&Y among its other business operations. The company entered into a definitive agreement for the acquisition in October and stockholders approved the acquisition in January.

Additionally, the US Department of Justice announced TeamHealth agreed to pay $60 million plus interest to settle Medicare and Medicaid false claims act allegations as successor in interest to IPC Healthcare Inc. TeamHealth in 2015 acquired IPC Healthcare, a national acute hospitalist and post-acute provider organization, in an all-cash transaction with an enterprise value of approximately $1.6 billion.

According to the US Department of Justice, TeamHealth agreed to resolve allegations that IPC violated the False Claims Act by billing Medicare, Medicaid, the Defense Health Agency and the Federal Employees Health Benefits Program for higher and more expensive levels of medical service than were actually performed — a practice known as “up-coding.”

The claims resolved by the settlements are allegations only and there has been no determination of liability.

“TeamHealth was aware of the Department of Justice’s investigation when it acquired IPC in 2015 and disclosed the existence of the ongoing investigation in all subsequent U.S. Securities and Exchange Commission filings,” TeamHealth said in a statement. “Upon closing the IPC transaction in November 2015, TeamHealth worked closely with the Department of Justice to evaluate the allegations and successfully resolved this matter involving the legacy operations of IPC. Blackstone was also aware of the Department of Justice investigation, the current status, and the anticipated settlement timing and amount at the time of the announcement of its acquisition of TeamHealth in October of 2016.”

The government contended that IPC knowingly and systematically encouraged false billings by its hospitalists, who are medical professionals whose primary focus is the medical care of hospitalized patients. Specifically, the government alleged that IPC encouraged its hospitalists to bill for a higher level of service than they actually provided. IPC’s scheme to improperly maximize billings allegedly included corporate pressure on hospitalists with lower billing levels to “catch up” to their peers.

As part of the settlement, TeamHealth entered into a five-year Corporate Integrity Agreement with the US Department of Health and Human Services Office of Inspector General covering the company’s hospital medicine division. This CIA is designed to increase TeamHealth’s accountability and transparency so that the company will avoid or promptly detect future fraud and abuse.

“TeamHealth has a robust and long-standing Compliance and Ethics Program, which incorporates the components recommended by the OIG compliance program guidance, including a chief compliance officer, policies and procedures, a code of conduct, initial and annual compliance training, internal auditing and monitoring, and a compliance hotline,” TeamHealth said.

The settlement resolves allegations filed in a lawsuit by Dr. Bijan Oughatiyan, a physician formerly employed by IPC as a hospitalist. The lawsuit was filed in a federal court in Chicago under whistleblower provisions of the False Claims Act which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action as it did in this case. Oughatiyan will receive approximately $11.4 million.