Ohio Hospital System Settles Kickback Claims for $14.25 Million
Case: Mercy Health has agreed to pay $14.25 million to settle charges of having improper financial relationships with six referring staff physicians. The feds accused the Cincinnati-based nonprofit system of providing above fair market value employment compensation to five internists and one oncologist in violation of the False Claims Act. Significance: The size of the settlement is somewhat surprising given the mitigating circumstances. Mercy Health self-disclosed the violations after discovering “errors in the administration of a small number of physician arrangements” during an internal audit and fully cooperated with the investigation, according to a company statement. By the same token, this is not the first time Mercy Health has been in hot water with the feds for false billing. Recently, Mercy hospitals in Missouri and Maine have faced—and ultimately settled—charges of paying oncologists and other physicians for referrals.
Case: Mercy Health has agreed to pay $14.25 million to settle charges of having improper financial relationships with six referring staff physicians. The feds accused the Cincinnati-based nonprofit system of providing above fair market value employment compensation to five internists and one oncologist in violation of the False Claims Act.
Significance: The size of the settlement is somewhat surprising given the mitigating circumstances. Mercy Health self-disclosed the violations after discovering “errors in the administration of a small number of physician arrangements” during an internal audit and fully cooperated with the investigation, according to a company statement. By the same token, this is not the first time Mercy Health has been in hot water with the feds for false billing. Recently, Mercy hospitals in Missouri and Maine have faced—and ultimately settled—charges of paying oncologists and other physicians for referrals.
Subscribe to view Essential
Start a Free Trial for immediate access to this article