North Carolina Hospital Settles Self-Disclosed Kickback Claims for $2.2+ Million

Case: Rex Hospital, Inc. d/b/a UNC Rex Healthcare, agreed to shell out $2,277,762 for kickbacks violations stemming from its deal to lease a doctor from a community hospital to provide cardiology services. In addition to paying the community hospital a market-based fee for the lease, the OIG contends Rex paid kickbacks by also paying the physician’s salary and bonuses for the cardiology services provided, reimbursements that should have been made by the community hospital.

Significance: The price of the settlement appears relatively high, especially when you consider that Rex self-disclosed to the OIG.