Milwaukee-based Aurora Health Care has agreed to pay $12 million to settle allegations it violated the False Claims Act and Stark Law, according to the Department of Justice.
The settlement resolves allegations that Aurora entered into compensation arrangements with two physicians that violated Stark Law because the arrangements were not commercially reasonable and took into account the physicians' anticipated referrals. The compensation also exceeded the fair market value of the physicians' services and was not for identifiable services, according to the Justice Department.
Although the compensation agreements allegedly violated Stark Law, Aurora still submitted claims for services ordered by the two physicians to Medicare and Medicaid, according to the Justice Department.
Aurora allegedly entered into the improper compensation agreements between 2008 and 2012, before the system merged with Downers Grove, Ill.-based Advocate Health Care this year.
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