Nashville, Tenn.-based Hospital Corporation of America, the U.S. Department of Justice and Tennessee have agreed on a settlement in which HCA will pay $16.5 million for alleged violations of the False Claims Act and the Anti-Kickback Statute, according to a Chattanooga Times Free Press report.
According to the settlement, in July 2007, HCA's Parkridge Medical Center in Chattanooga, Tenn., and HCA Physician Services allegedly entered into a series of transactions with Diagnostic Associates of Chattanooga. In those deals, HCA paid remuneration and other benefits to Diagnostic physicians to encourage patient referrals to HCA's facilities.
HCA Physician Services later bought Diagnostic and hired its physicians, according to the settlement. Concurrently, Parkridge allegedly agreed to lease office space from Diagnostic "at a rental rate well in excess of fair market value," according to the settlement.
Thomas Bingham filed the whistleblower lawsuit in March 2008, which also alleged HCA had submitted false claims to Medicare and Medicaid in addition to the Anti-Kickback Statute violations.
HCA will pay $15.69 million to the federal government and $807,000 to Tennessee. Parkridge also signed a five-year corporate integrity agreement as part of the settlement.
HCA, the largest for-profit hospital chain in the country, has been involved with some of the biggest False Claims Act settlements in U.S. history. In December 2000, HCA paid civil fines of $731.4 million, and in June 2003, it paid $631 million.
According to the settlement, in July 2007, HCA's Parkridge Medical Center in Chattanooga, Tenn., and HCA Physician Services allegedly entered into a series of transactions with Diagnostic Associates of Chattanooga. In those deals, HCA paid remuneration and other benefits to Diagnostic physicians to encourage patient referrals to HCA's facilities.
HCA Physician Services later bought Diagnostic and hired its physicians, according to the settlement. Concurrently, Parkridge allegedly agreed to lease office space from Diagnostic "at a rental rate well in excess of fair market value," according to the settlement.
Thomas Bingham filed the whistleblower lawsuit in March 2008, which also alleged HCA had submitted false claims to Medicare and Medicaid in addition to the Anti-Kickback Statute violations.
HCA will pay $15.69 million to the federal government and $807,000 to Tennessee. Parkridge also signed a five-year corporate integrity agreement as part of the settlement.
HCA, the largest for-profit hospital chain in the country, has been involved with some of the biggest False Claims Act settlements in U.S. history. In December 2000, HCA paid civil fines of $731.4 million, and in June 2003, it paid $631 million.
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