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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

nt, "...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".

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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

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SOURCE Physician Hospitals of America


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