Union General Hospital has agreed to pay $5 million to resolves allegations that it improperly paid doctors to refer patients to the medical facility in violation of the False Claims Act.
U.S. Attorney Byung J. “BJay” Pak said in a press statement that the allegations surfaced as Union General officials were working to repair the hospital's reputation following the 2016 arrests of several doctors associated with the hospital in a prescription drug abuse scheme. Shortly after those arrests, the hospital replaced the majority of its executive team, conducted an internal investigation and voluntarily disclosed significant amounts of information related to several financial relationships with physicians and physician practices. The doctors were indicted last April.
This settlement resolves allegations that Union General engaged in several different improper financial relationships with physicians between 2012 and 2016 in violation of the Stark Law. The Stark Law forbids hospitals from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital unless the relationship falls within a defined exception. The United States alleges that the relationships the hospital had with certain physicians were prohibited because Union General compensated the physicians in amounts that were above or inconsistent with fair market value or in a manner that took into account the volume or value of the physicians’ referrals.
The doctors involved in the alleged improprieties were not name in the press release.
The claims resolved by the settlement are allegations only, and there has been no determination of liability, according to Pak.
"It is unacceptable for hospitals to provide financial incentives to induce physicians to steer patients their way," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "The OIG will vigorously pursue providers who enter into arrangements that can potentially corrupt medical decision making."
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, and the Federal Bureau of Investigation, with assistance from the Tactical Diversion Squad from the Drug Enforcement Administration.
http://accesswdun.com/article/2019/2/760969/union-general-hospital-to-pay-5m-to-settle-improper-payment-allegations