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Tuesday, September 17, 2019

U.S. settles with Detroit hospital over alleged illegal patient referrals

Federal Gov

By Marian Johns | Aug 7, 2018


WASHINGTON, D.C. — A regional Detroit-based hospital has reached a settlement with the federal government over allegations the hospital promised free or below fair market value office space and staff to physicians in exchange for referrals.

The U.S. Department of Justice (DOJ) alleges between 2004 and 2012 William Beaumont Hospital violated the Anti-Kickback Statue and the False Claims Act by submitting false claims for patients that came from referring physicians that the hospital had improper relationships with. 

“Offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system,” DOJ Civil Division acting assistant attorney general Chad Readler said in a statement. “Patients deserve the unfettered, independent judgment of their health care professionals.”


"This result should impress on the medical community that we will aggressively take action to recover monies wrongfully billed to Medicare, through the remedies provided in the federal False Claims Act,” added Eastern District of Michigan U.S. attorney Matthew Schneider. 

The settlement resolves four lawsuits filed under qui tam and includes a five-year corporate integrity agreement between Beaumont and the Department of Health and Human Services Office of the Inspector General.

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