Physician Sues Augusta Health in Virginia Over Alleged Referral Scheme

A physician is suing Fisherville, Va.-based Augusta Health for $3.35 million in damages, claiming the system fired him after he refused to refer patients exclusively to Augusta hospitals and its medical group, according to a News Virginian report.

David Herring, MD, claims senior executives from his former employer "openly and directly" told him that excess fees earned by its cardiology practice would go directly to him as subsidies and salary, which is why he must refer patients to Augusta cardiologists, according to the report.

The physician's suit said he refused to do so, which would have been a violation of a state law banning referrals in exchange for potential compensation.

Dr. Herring, an internist, also claims Augusta Health and Augusta Medical Group conspired to damage his practice, according to the report, as he was allegedly "abruptly forced to start a new medical practice." He was fired from Augusta's medical group in October 2011 and now practices privately.

Augusta Health did not comment in the news report.

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