South Shore Physician Hospital Organization in Weymouth, Mass., has agreed to pay $1.78 million to the state and federal government to settle allegations that it paid kickbacks to its physician members in exchange for patient referrals, according to the Department of Justice.
The lawsuit alleged SSPHO paid physicians kickbacks, in the form of cash grants, for referring patients to SSPHO providers.
SSPHO "allegedly approved 103 separate recruitment grants to 33 different physician groups as part of the scheme" from 2001 to 2010, according to the DOJ.
"Unlawful patient referral schemes not only limit patient provider choices, but ultimately lead to higher healthcare costs," said U.S. Attorney Carmen Ortiz.
Although SSPHO has agreed to this settlement there has been no admission of wrongdoing. SSPHO contends it "self-reported the kickback scheme after an internal investigation in 2012 and cooperated with the investigation by the state Attorney General Martha Coakley and U.S. Attorney Carmen Ortiz," according to a Boston Globe report.
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