Navigation Links
US Department of Justice Confirms Large Corporate Owned Hospitals Involved in Illegal Contracting Schemes in McAllen Texas, Not Physician Owned Hospitals
Date:11/2/2009

WASHINGTON, Nov. 2 /PRNewswire/ -- Over the last few months, concern over healthcare costs in McAllen, Texas has been incorrectly aimed by a few in Congress toward physician ownership. However, current federal action in McAllen, Texas has uncovered the real problem - large, corporate hospitals who now owe millions for their illegal contracting schemes.

Last week, the Department of Justice (DOJ) announced that its McAllen, Texas investigation of violations of the "False Claims Act, the Anti-Kickback Statute and the Stark Statute" has resulted in a $27.5 million settlement with Universal Health Services Inc., a company based in Pennsylvania that owns South Texas Health System and other hospitals around the country.[Source: USDOJ 10/30/09]

The one physician owned hospital in McAllen, Texas, Doctors Hospital at Renaissance, was never part of the DOJ investigation and no allegations have ever been brought against the facility.

"Our opposition has attempted to pass the blame to physician owned hospitals for cost concerns brought to light by a June 2009 article published in the New Yorker. As the DOJ settlement demonstrates, that is simply not the case. The problem has never been physician ownership. The real problem lies with big corporate hospital chains," said Molly Sandvig, JD Executive Director of Physician Hospitals of America (PHA).

Despite this and other convincing evidence that points away from physician ownership as a concern, language that attacks physician ownership has been inserted by corporate hospital lobbyists in both the House and Senate versions of health care reform bills.

"Congress is about to be railroaded into punishing innocent physicians who have been trying to bring reform to hospitals by the same type of big hospital corporations that were finally caught in McAllen, Texas," says Sandvig.

The Justice Department announcement specifically noted that the settlement, "...involved allegations that the defendants had entered into financial relationships with several doctors in McAllen in order to induce them to refer patients to the defendants' hospitals. The government alleged that these payments were disguised through a series of sham contracts, including medical directorships and lease agreements."

Sandvig commented that PHA is pleased to see that the real problem has been identified. "We have said for many years that we share concerns about illegal kickback schemes and that enforcement must be targeted to protect Medicare and tax money," commented Sandvig."

"At PHA, the patient and his or her medical needs are our top priority," stated Sandvig. "Therefore, it is truly disheartening to see such inappropriate self-referral stemming from employment incentives created between employed physicians and hospitals systems. We fear the employment relationship leads to this behavior far too often".

_________________________________

Physician Hospitals of America (PHA) represents over 220 American hospitals owned and operated by physicians themselves. PHA is on the web at: www.physicianhospitals.org

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=83748

SOURCE Physician Hospitals of America


'/>"/>
SOURCE Physician Hospitals of America
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. PA Agriculture Department Warns Consumers of Tainted Raw Milk Sold by Perry County Dairy
2. Justice Department to Hold Media Event to Demonstrate New Database for Matching Unidentified Remains and Missing Persons Information
3. Loma Linda University Medical Center Selects Beryl to Manage Call Center Interactions for Womens Services Programs and Departments
4. PA Department of Public Welfare Begins Outreach to Medical Assistance Consumers Following Burglary at State Office Building
5. PA Health Department Survey Shows Impact of Income, Gender, Other Factors on Health and Access to Health Care
6. Pennsylvania Department of Aging Receives Grant to Improve Alzheimers Support
7. Health Department Marks Take a Loved One to the Doctor Day
8. Partnership for a Drug-Free America and Colorado Springs Police Department Introduce Methamphetamine Prevention Program to Colorado Law Enforcement
9. Verathon Inc. Introduces GlideScope(R) Ranger Single Use Video Laryngoscope for Emergency Departments, EMS and Military; Enables Fast Intubations and Eliminates Time-Consuming Disinfection
10. Stryker Announces Resolution Related to March 2005 U.S. Department of Justice Subpoena
11. Blue Cross Blue Shield of Michigan Launches Effort in Five Michigan Cities with Department of Community Health to Enroll Uninsured Children in MIChild
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2017)... and London UK (PRWEB) , ... June 27, 2017 , ... ... to a clinical study is whether they can trust the sponsor to pay them ... is vital that sponsors and CROs establish payment strategies that encourage sites to work ...
(Date:6/27/2017)... (PRWEB) , ... June 27, 2017 , ... ... payment solution for many of the health care industry’s hospitals and provider groups, ... patient financing portal for select customers. Parasail Health is a San Francisco health-finance ...
(Date:6/27/2017)... ... June 27, 2017 , ... Building ... SUNucate efforts, Louisiana became the sixth state to pass legislation which ensures that ... Bel Edwards’ signature, Louisiana joins the states of Alabama, Arizona, Florida, Utah and ...
(Date:6/27/2017)... (PRWEB) , ... June 27, 2017 , ... A January ... been projected to reach a staggering $6.81 billion by the year 2024 according to ... at a faster rate than those made from titanium. Los Angeles area clinic Beverly ...
(Date:6/27/2017)... ... 2017 , ... The Kelahan Agency, a privately owned firm ... southern New Hampshire, is teaming up with the New Horizons for New Hampshire ... the region. , New Horizons for New Hampshire provides a wealth of services ...
Breaking Medicine News(10 mins):
(Date:6/14/2017)... 14, 2017  ivWatch LLC, a medical device company ... (IV) therapy, is pleased to announce it was the ... Hospital Supplies and Equipment at the 2017 Medical Design ... medtech industry. The award was presented by Medical Device ... Center in New York during ...
(Date:6/14/2017)... -- In 2016, Embodied Labs took top prize ... came away with $25,000 in seed-fund investment. Embodied Labs ... "entering the life of another" and by the Journal ... medical professionals in an entirely new dimension." Building upon ... for the Department of Education,s EdSimChallenge, where they received ...
(Date:6/12/2017)... Kineta, Inc., a biotechnology company focused on the ... President of R&D and Head of Virology Kristin Bedard has ... the Northwest and Beyond meeting sponsored by Life Science ... from 8:30-10:30 AM PDT at the Agora Conference Center in ... Bedard will be joined by other leaders in infectious disease ...
Breaking Medicine Technology: