As part of a settlement agreement, Detroit Medical Center is asking its affiliated physicians to pay for computer equipment provided up to six years ago, according to a Crain's Detroit Business report.
The sought-after reimbursements stem from a 2010 settlement that resolved allegations of DMC's improper relationships with physicians, which allegedly spanned six years and involved below-market leases, free advertising, marketing and tickets to events. As part of the settlement, DMC was required to seek to recover improper payments from physicians from that time.
At least 29 physicians have received letters in the past six weeks reportedly seeking $10,000 to $14,000 in repayments for computer equipment. One physician said she initially received a bill of $13,000 for two computers, two monitors and a printer that is now 14 years old. That figure was reduced to $8,700 after the physician's lawyer contacted DMC and Farbman Group, the company managing the system.
The physician said DMC is concerned the computer equipment may be construed by the government as an improper payment to refer patients, according to the report. However, she said the equipment was provided to physicians with no obligation to pay back so they could access the hospital's database.
DMC press secretary Tiffany Jones said reports of DMC seeking $10,000 to $14,000 from each of the 29 physicians are "inaccurate and exaggerated," according to the report. "We are doing exactly what the law requires and exactly what we promised the federal government we would do in our 2010 settlement by being diligent in collecting fair market value for all services provided," Ms. Jones said in the report.
While Ms. Jones said most physicians have been cooperating, other physicians cited in the report expressed opposition to the repayments.
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The sought-after reimbursements stem from a 2010 settlement that resolved allegations of DMC's improper relationships with physicians, which allegedly spanned six years and involved below-market leases, free advertising, marketing and tickets to events. As part of the settlement, DMC was required to seek to recover improper payments from physicians from that time.
At least 29 physicians have received letters in the past six weeks reportedly seeking $10,000 to $14,000 in repayments for computer equipment. One physician said she initially received a bill of $13,000 for two computers, two monitors and a printer that is now 14 years old. That figure was reduced to $8,700 after the physician's lawyer contacted DMC and Farbman Group, the company managing the system.
The physician said DMC is concerned the computer equipment may be construed by the government as an improper payment to refer patients, according to the report. However, she said the equipment was provided to physicians with no obligation to pay back so they could access the hospital's database.
DMC press secretary Tiffany Jones said reports of DMC seeking $10,000 to $14,000 from each of the 29 physicians are "inaccurate and exaggerated," according to the report. "We are doing exactly what the law requires and exactly what we promised the federal government we would do in our 2010 settlement by being diligent in collecting fair market value for all services provided," Ms. Jones said in the report.
While Ms. Jones said most physicians have been cooperating, other physicians cited in the report expressed opposition to the repayments.
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