Wheeling, W.V.-based Ohio Valley Health Services and Education will pay $3.8 million to settle allegations that the system's hospitals submitted false claims to Medicare and Medicaid from Jan. 2005-Aug. 2010, according to a Wheeling Intelligencer report.
U.S. Attorney William J. Ihlenfeld II said the system, which operates Ohio Valley Medical Center in Wheeling, W.V., and East Ohio Regional Hospital in Martins Ferry, Ohio, made no official admission of liability but agreed to pay the fines for violating the Stark Act. Mr. Ihlenfeld claims the compensation arrangements that the hospitals had with local physicians were "improper and were for significant sums," according to the report.
Government officials are beginning phase two of the investigation into the system, in which they will pursue the physicians involved and require the return of prohibited payments.
Ohio Valley Health said it self-reported issues regarding physician compensation to the government last year.
"These issues did not involve any problems with patient care areas and we have developed procedures to ensure these compliance issues do not occur in the future," the system said in a statement, adding the company hopes to work with federal officials to develop a "model compliance program ensuring that our organization will exceed federal guidelines and expectations."
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U.S. Attorney William J. Ihlenfeld II said the system, which operates Ohio Valley Medical Center in Wheeling, W.V., and East Ohio Regional Hospital in Martins Ferry, Ohio, made no official admission of liability but agreed to pay the fines for violating the Stark Act. Mr. Ihlenfeld claims the compensation arrangements that the hospitals had with local physicians were "improper and were for significant sums," according to the report.
Government officials are beginning phase two of the investigation into the system, in which they will pursue the physicians involved and require the return of prohibited payments.
Ohio Valley Health said it self-reported issues regarding physician compensation to the government last year.
"These issues did not involve any problems with patient care areas and we have developed procedures to ensure these compliance issues do not occur in the future," the system said in a statement, adding the company hopes to work with federal officials to develop a "model compliance program ensuring that our organization will exceed federal guidelines and expectations."
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