Navigation Links
Covenant Medical Center to Pay U.S. $4.5 Million to Resolve False Claims Act Allegations

WASHINGTON, Aug. 25 /PRNewswire-USNewswire/ -- Covenant Medical Center in Waterloo, Iowa has agreed to pay the United States $4.5 million to resolve allegations that it violated the False Claims Act, the Department of Justice announced today.

This settlement resolves allegations that Covenant submitted false claims to Medicare by having financial relationships with five physicians that violated the Stark Law. The Stark Law prohibits a hospital from profiting from referrals of patients made by a physician with whom the hospital has an improper compensation arrangement. An arrangement is improper if a physician is paid above fair market value for their services and that compensation is not commercially reasonable. The Stark Law is intended to ensure that physicians' medical judgments are not compromised by improper financial incentives and are based solely on the best interests of the patient.

In this lawsuit, the United States alleged that Covenant violated the Stark Law by paying commercially unreasonable compensation, far above fair market value, to five employed physicians who referred their patients to Covenant for treatment. These physicians were among the highest paid hospital-employed physicians not just in Iowa, but in the entire United States.

Tony West, Assistant Attorney General for the Department of Justice's Civil Division, stated, "Health care providers must act in the best interests of their patients. The Justice Department will protect patients by pursuing hospitals that have improper financial relationships with physicians."

"This payment is the largest ever related to claims of health care fraud in the Northern District of Iowa," said U.S. Attorney Matt M. Dummermuth of the Northern District of Iowa. "We are actively working with our investigative partners to ensure Medicare funds are properly spent, and we will continue to aggressively pursue all types of fraud in order to protect federal health care dollars."

The Justice Department's Civil Division and the United States Attorney's Office for the Northern District of Iowa jointly handled this case. The Office of the Inspector General, Department of Health and Human Services provided investigative assistance.

SOURCE U.S. Department of Justice
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Covenant Medical Center CEO Spencer Maidlow is Named Michigans Top Hospital and Patient Care Advocate for 2009
2. Chem Rx Corporation in Technical Violation of Three Financial Debt Covenants
3. CareTech Solutions Caps Banner Year by Signing Pennsylvanias Lehigh Valley Health Network, Tennessees Covenant Health, and Ohios Marietta Memorial Hospital to Provide Web Services
4. Tyler Perry Donates $110K to Covenant House Keeping Atlanta Teens off the Street
5. Covenant House Appoints Virginia S. Bauer Senior Vice President
6. Covenant House Welcomes His Holiness Pope Benedict XVI
7. The Nation's Leading Provider of Medical Transcription Services to Physician Practices, MxSecure, Inc., Named to Inc. 5000 Fastest Growing Private Companies in America
8. Greenway Medical Technologies PrimeEnterprise Creates an Interconnected and Interoperable System of Community Health Information for Its Customers
9. American Medical Association Launches e-Book Strategy with iPublishCentral from Impelsys
10. MarketsandMarkets: Top Ten Medical Device Technologies Market Worth $454.3 Billion by 2014
11. South Palm Orthospine Institute: World Renowned Spine Specialist and Medical Author, Dr. Stewart G. Eidelson Announces New Additions, Blogs & Twitter !
Post Your Comments:
(Date:11/30/2015)... ... November 30, 2015 , ... During the National ... caregivers and held two webinars on topics of ‘Medical and Palliative Care Decisions,’ ... at . , With a loved one's diagnosis of mesothelioma, the ...
(Date:11/30/2015)... ... November 30, 2015 , ... ... . The directory is specialized and only includes chiropractic clinics in the US. ... competent and trustworthy alternative health practitioner when back pain sets in. When people ...
(Date:11/30/2015)... ... November 30, 2015 , ... In an effort ... the Word of Life Christian Church of Flint, MI, hosted a family-oriented evening ... 1.25 ton pile of candy dubbed “Candy Mountain”. , A Forever Recovery, a ...
(Date:11/30/2015)... VA (PRWEB) , ... November 30, 2015 , ... ... Foundation kicked off its annual fundraising campaign to raise funds for its research, ... raises approximately 10% of the organization’s annual funding. , The Mesothelioma Applied Research ...
(Date:11/30/2015)... ... November 30, 2015 , ... The ... in Dallas, TX, on January 29 and 30, 2016. The course welcomes dental ... of their practices, to learn how to better succeed in the modern dental ...
Breaking Medicine News(10 mins):
(Date:11/30/2015)... MOUNTAIN VIEW, Calif. , Nov. 30, ... has been the norm in U.S. medical ... obsolete. The increasingly popular accountable care payer-provider ... payment models and, in their wake, alter ... or quality-based payments will push forward new ...
(Date:11/30/2015)... 2015 Cumberland Pharmaceuticals (CPIX), today announced that A.J. ... on December 3, 2015. TIME: 3:15p.m. ET LINK: ... LINK: --> DATE: Thursday, ... --> --> This ... invited to ask the company questions in real-time - both ...
(Date:11/30/2015)... Varian Medical Systems (NYSE: VAR ) has signed ... Apollo Hospitals Group, the largest hospital chain in India ... technologists in the country. The MoU was signed by Dr. ... Ashok Kakkar , Varian,s India managing director, ... , Varian intends to deploy its Access to Care program ...
Breaking Medicine Technology: