Last week, HHS, OIG, CMS, the Office of the Assistant Secretary for Financial Resources, and the Administration for Children and Families issued an interim final rule (the Rule) that adjusts maximum civil monetary penalties for inflation.
STARK
Physicians’ compensation structure results in $17M Stark Law fine and CIA for hospital
Lexington Medical Center (“LMC”), a 428-bed hospital in South Carolina, has agreed to pay $17 million to resolve allegations that it violated the federal False Claims Act (“FCA”), 31 U.S.C. §§ 3729 et seq., and Physician Self-Referral Law (“Stark Law”), 42 U.S.C. § 1395nn, by allegedly providing improper financial incentives to 28 physicians for referrals.
CMS seeks feedback on standard form for SRDP submissions
CMS has asked for comments on a form for healthcare providers to disclose actual or potential violations of the federal self-referral (Stark) law. The proposed format includes a disclosure form, a physician-information form, and a financial-analysis worksheet.
As many providers…
Tuomey settles for $72.4 million, will be sold and under CIA
Facing a $237 million verdict for alleged illegal compensation arrangements with doctors, Tuomey Healthcare System has agreed to settle with the government for $72.4 million. According to the government’s press release, Tuomey will be sold to Palmetto Health, a…
Florida hospital pays $69.5 million to settle alleged Stark issues
The government has announced that a South Florida hospital district will pay $69.5 million to settle False Claims Act allegations related to financial arrangements with physicians.
This case follows the trend of increased scrutiny of physician compensation, both by whistleblowers …
CMS proposes Stark Law liberalizations
On July 8, CMS proposed significant changes to the Stark Law via a far-reaching proposed rule and commentary that would—and in a few cases may already—eliminate numerous technical traps under the current regulatory scheme.
From eliminating time limitations in connection…
$237 million judgment against Tuomey stands
Tuomey Healthcare System Inc. owes the government $237.4 million after losing its Fourth Circuit appeal of a judgment imposed after a jury found the hospital liable for violations of the Stark self-referral law and the False Claims Act.
Tuomey has…
D.C. Circuit sends HHS back to the drawing board on Medicare equipment lease rule
The U.S. Department of Health and Human Services (“HHS”) will be heading back to District Court—and likely the drawing board altogether—to grapple with a recent federal court holding that the Medicare equipment lease rule is probably illegal.
The final rule…
Hospital executives found guilty of kickback scheme
Three former hospital executives have been convicted of defrauding federal healthcare programs through an alleged kickback scheme to pay doctors to refer patients to the hospital.
An Illinois federal jury returned guilty verdicts on March 19, 2015 against the former…
OIG seeks input on safe harbors & special fraud alerts
The Department of Health and Human Services Office of Inspector General (“OIG”) has asked for recommendations to help develop new or revised safe harbors from the federal Anti-Kickback Act, according to a notice published on December 27, 2013. The OIG…