Memorial Hospital in Ohio Pays $8.5M to Settle Kickback Allegations

Memorial Hospital in Fremont, Ohio, has agreed to pay the government $8.5 million to settle allegations that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians, according to the Department of Justice.

Allegations against Memorial Hospital stated a joint venture between the hospital and a pain management physician and an arrangement under which an ophthalmologist purchased intraocular lenses and then resold them to Memorial at inflated prices, violated the Anti-Kickback Statue and the Stark Statute.

"Improper financial relationships between health care providers and their referral sources can undermine physicians' judgment about patients' true healthcare needs and drive up healthcare costs for everyone," said Assistant Attorney General for the Justice Department's Civil Division, Stuart F. Delery. "The Justice Department is firmly committed to recovering the taxpayer dollars lost due to these arrangements and making sure that all healthcare providers follow the rules."

More Articles on False Claims Litigation:

False Claims Act Suit Settled Against Teva Pharmaceuticals for $27.6M 
Halifax to Institute Internal Monitoring as Part of $85M Settlement 
Case Expanding False Claims Act Exposure May Be Reviewed by Supreme Court