Navigation Links
Covenant Medical Center to Pay U.S. $4.5 Million to Resolve False Claims Act Allegations
Date:8/25/2009

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:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... ... 2017 , ... The American Board of Family Medicine's (ABFM) Board of Directors ... Officer, succeeding Dr. James C. Puffer upon his retirement. Dr. Newton will serve in ... retirement at the end of 2018. Upon assuming the role of President and CEO ...
(Date:10/13/2017)... , ... October 13, 2017 ... ... of Pharmacy (SOP) alumni Hannah Randall, PharmD ‘17, and Jennifer Huggins, PharmD ... on guideline updates for the primary prevention of cardiovascular diseases during the ...
(Date:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... Many families ... However, many long-term care insurance companies have a waiver for care if the client ... elimination period, when the family pays for care, is often waived, so the benefits ...
(Date:10/13/2017)... , ... October 13, 2017 , ... Global Healthcare Management’s ... Alexandria Park in Milford, NJ. This free event, sponsored by Global Healthcare Management’s ... The fun run is geared towards children of all ages; it is a ...
(Date:10/13/2017)... ... October 13, 2017 , ... Coveros, a leader in agile ... a contract by the Center for Medicare and Medicaid Services (CMS). The Enterprise ... use of Agile methodologies in a consistent and high value manner across CMS ...
Breaking Medicine News(10 mins):
(Date:10/4/2017)... LAWRENCE, Mass. , Oct. 4, 2017 /PRNewswire/ ... developer of single-use, self-contained, illuminating medical devices, today ... National Health Surveillance Agency (or Agência Nacional ... ®. The first single-use, cordless surgical retractor with ... ONETRAC provides optimal access, illumination and exposure of ...
(Date:10/2/2017)... Oct. 2, 2017  Eli Lilly and Company (NYSE: ... for the third quarter of 2017 on Tuesday, October ... on that day with the investment community and media ... The conference call will begin at 9 a.m. Eastern ... a live webcast of the conference call through a ...
(Date:10/2/2017)... Halo Labs announces the European launch of their new low volume, ... 2017 in Cambridge, U.K on October 4th. ... samples with unprecedented speed and sensitivity while using far less sample ... ... system ...
Breaking Medicine Technology: