![]() Steward admits that it has been unable to confirm that the physician performed the services but that it still paid the physician from November 2010 through June 2016 and that the physician referred patients to GSMC during that period. The DOJ press release details additional allegations that came to light during the government investigation: “First, in October 2010, Steward entered into a compensation arrangement with a physician pursuant to which the physician agreed to serve as Medical Director of Post-Acute Care Services. The FCA lawsuit was initiated in Massachusetts federal court in 2018 by three whistleblowers, who alleged that Steward provided payment to certain providers for services that were not performed, and that “Steward rented space from providers at above-market rates to induce patient referrals.” 4 Earlier in February 2022, the DOJ reached a separate $100,000 settlement with Brockton Urology, an entity also involved in the alleged FCA violations. 3 Steward’s multi-million dollar settlement is part of a larger trend in which the DOJ is holding accountable private equity-owned (and formerly private equity-owned) healthcare companies for alleged fraudulent activity. 1 Steward Health Care “is the largest private, tax-paying hospital operator in the country” with hospitals in Massachusetts, Pennsylvania, Ohio, Arkansas, Texas, Louisiana, Utah, and Arizona 2 and until 2020, it was owned by private equity firm Cerberus Capital Management, including nearly the entire period of the alleged fraud. On June 10, 2022, the Department of Justice announced a $4.7 million settlement agreement with Steward Health Care and several related corporate entities to resolve allegations of violations under the False Claims Act (FCA). Steward Health Care Reaches $4.7 Million Settlement to Resolve Allegations of False Claims Act Violations
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