Cayuga Medical Center in Ithaca, N.Y., has agreed to pay a $3.57 million settlement to the state of New York after it allegedly violated Stark Law, according to a news release from the office of U.S. Attorney Richard S. Hartunian.
The settlement stems from a whistleblower suit filed by a plastic surgeon who formerly practiced in Ithaca. The physician claimed Cayuga recruited physicians to the area through agreements that violated Stark Law by allegedly paying for expenses that are not permitted.
The qui tam suit also alleged that Cayuga violated the False Claims Act by submitting claims to Medicare and Medicaid when it was not in compliance with Stark Law.
The whistleblower, Daniel Jorgenson, MD, will receive 18 percent of the settlement —roughly $567,000.
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The settlement stems from a whistleblower suit filed by a plastic surgeon who formerly practiced in Ithaca. The physician claimed Cayuga recruited physicians to the area through agreements that violated Stark Law by allegedly paying for expenses that are not permitted.
The qui tam suit also alleged that Cayuga violated the False Claims Act by submitting claims to Medicare and Medicaid when it was not in compliance with Stark Law.
The whistleblower, Daniel Jorgenson, MD, will receive 18 percent of the settlement —roughly $567,000.
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