DuBois, Pa.-based Penn Highlands Healthcare has agreed to pay the federal government $735,000 to resolve a whistleblower suit alleging Physician Self-Referral Law violations from claims submitted to Medicare and Medicaid.
From July 1, 2009, through June 30, 2012, Penn Highlands DuBois allegedly violated the Physician Self-Referral Law, commonly known as the Stark Law, by paying improper compensation to referring physician Gary Ott, MM, and to a physician employed by his practice.
Prosecutors claim the hospital paid the physicians $420,000 under a consulting, medical director and related services agreement for "employment services" allegedly performed before the agreement went into effect, during which time neither physician was employed by Penn Highlands DuBois.
The settlement stems from a whistleblower complaint filed in October 2016 by three former Penn Highlands employees: Tuesdae Stainbrook, DO, Jonathan Pope, MD, and Mary Simpson. They will receive $154,350 as part of the settlement, according to the Justice Department.
The settlement is not an admission of wrongdoing by Penn Highlands.