California Hospital CEO to Pay $64,000 to Settle Allegations of False Claims

Michael Bakst, former CEO at Community Memorial Hospital in Ventura, Calif., has agreed to pay $64,000 to settle allegations by the Office of Inspector General for the U.S. Department of Health and Human Services that he arranged improper payments to physicians and filed false claims to Medicare as a result, according to a report by the Ventura County Star.

According to the OIG, Mr. Bakst violated the Civil Monetary Penalties Law, which prohibits hospitals from compensating health providers for Medicare or Medicaid referrals, as well the Stark Law, when claims were filed for services resulting from these referrals.

CMH previously settled with the federal government for $1.5 million to resolve allegations that it provided below fair-market-value loans and rental arrangements, employment arrangements with physicians' family members and gifts in return for patient referrals, according to the report.

Mr. Bakst served as CEO of the hospital at the time of these alleged arrangements before being terminated in 2003, according to the report.

Mr. Bakst admitted no wrongdoing as part of the settlement.

Read the Ventura County Star's report on the Community Memorial Hospital CEO settlement.

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