Dallas-based EmCare and Lancaster, Pa.-based Physicians' Alliance have agreed to settle allegations they received illegal kickbacks from now-defunct Health Management Associates in Naples, Fla., in exchange for referrals to hospitals owned by HMA, according to the Department of Justice.
Here are six things to know about the settlements.
1. EmCare's settlement resolves allegations the physician group received kickbacks from HMA from 2008 through 2012 to recommend patients be admitted to HMA hospitals on an inpatient basis when the patients should have been treated on a less lucrative outpatient basis.
2. HMA allegedly made bonus payments to EmCare ED physicians and made EmCare's retention of existing contracts and receipt of new contracts contingent on increased admissions of patients who came to the ED.
3. EmCare agreed to pay $29.6 million to resolve the allegations.
4. In a separate settlement, Physicians' Alliance and three of its executives agreed to resolve allegations they accepted illegal kickbacks from HMA from 2009 to 2012. The government alleged HMA paid kickbacks to the physician group in exchange for referrals to two HMA hospitals.
5. To resolve the allegations, Physicians' Alliance and the three executives who entered the settlement will pay $4 million plus a percentage of proceeds under the sale of the physician group's interest in a joint venture with HMA.
6. The allegations against both physician groups were originally brought in separate cases filed under the qui tam, or whistle-blower, provisions of the False Claims Act.
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