Navigation Links
Update: 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.

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. Update: Medicare Picks N.J. to Test Innovative Incentive System
2. UPDATE: Access Pharmaceuticals to Present at Jesup & Lamont 2009 Growth Stock Conference
3. National Small Business Week Update: Sam's Club Announces Simplified Small Business Membership; Partnership With U.S. Chamber of Commerce, Plus Free One-Day Pass
4. GlaxoSmithKline Update: Influenza A (H1N1)
5. UPDATE: Swine Flu Spread Will Trigger Difficult Legal Questions for Employers Says Noted Pillsbury Attorney
6. UPDATE: NewCardio Leadership to Present Clinical Data of Fully Automated QTinno(TM) Study at American College of Cardiology Annual Meeting
7. Update: Onyx Pharmaceuticals Reports Record Full Year and Fourth Quarter 2008 Financial Results
8. UPDATE: P&M Corporate Finance Announces Partnership with Robin Young to Present the Fifth Annual Spine Technology Summit
9. UPDATE: HAP Expands Medicare Advantage Options to Include Acupuncture and Chiropractic Services
10. Economic Update: You Should Invest (in Your Appearance)
11. TCT update: press conference schedule announced for TCT
Post Your Comments:
(Date:11/27/2015)... CA (PRWEB) , ... November 27, 2015 , ... According ... at the recent 2015 American Dental Association meeting in Washington D.C. revolved around the ... protect a patient’s overall health. The talk stressed the link between periodontal disease (more ...
(Date:11/27/2015)... ... 2015 , ... A team of Swiss doctors has released a report on ... just posted the findings on the website. Click here to read the details ... mesothelioma patients who were treated with chemotherapy followed by EPP surgery. Among the 106 ...
(Date:11/27/2015)... ... November 27, 2015 , ... ... edition of USA Today in Atlanta, Dallas, New York, Minneapolis, South Florida, with ... digital component is distributed nationally, through a vast social media strategy and across ...
(Date:11/27/2015)... ... 2015 , ... Intellitec Solutions announced today that they have ... as Microsoft’s official group for end users of Dynamics SL ERP software, the ... experts and representatives. Intellitec Solutions’ membership status demonstrates their ongoing commitment to the ...
(Date:11/27/2015)... , ... November 27, 2015 , ... CBD College ... of Allied Health Education Programs (CAAHEP) awarded accreditation to its Diagnostic Medical Sonography program. ... accredited colleges, as only one of twelve colleges and universities in the state of ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... 2015 ) ... "2016 Future Horizons and Growth Strategies in ... Supplier Shares, Country Segment Forecasts, Competitive Intelligence, ... --> ) has announced ... Horizons and Growth Strategies in the French ...
(Date:11/26/2015)... , November 26, 2015 ... Juntendo universitetssjukhus ser potential att använda SyMRI ... (MR-bilder) för patienter med multipel skleros ... forskningsavtal med SyntheticMR AB för att kunna ... på sjukhuset. Med SyMRI kan man generera ...
(Date:11/26/2015)... November 26, 2015 ... adds "Global Repaglinide Industry ... Report on China Repaglinide Market, 2010-2019" ... data and information to its online ... . --> ...
Breaking Medicine Technology: