Navigation Links
Update: 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.

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:
*Name:
*Comment:
*Email:
(Date:2/12/2016)... CA (PRWEB) , ... February 12, 2016 , ... ... Film Studios. The new cartoon style themes are great for showcasing pictures, videos as ... customized scene generators, titles like introductions, lower thirds, transitions and a beautiful frame overlay. ...
(Date:2/11/2016)... ... February 12, 2016 , ... Fitbody Personal Training offers outdoor training classes which ... to get fit and healthy. Located in Phoenixville, PA, the classes are structured as ... for horseback riders who want to lose weight and tone up. This class offers ...
(Date:2/11/2016)... (PRWEB) , ... February 11, 2016 , ... ... (DMPG) will use the action analytics leader’s population health solutions, MDinsight® and ... clinical support to the Atlanta-area healthcare system. Details of the contract were not ...
(Date:2/11/2016)... ... February 11, 2016 , ... Dr. Sadati’s ... of cosmetic procedures. Along with performing procedures, the magazine also highlights that Dr. ... cosmetic procedures. One of the most common procedures he performs is his natural ...
(Date:2/11/2016)... Nashville, TN (PRWEB) , ... February 11, 2016 , ... ... commercial cleaning business to a new market, and it’s the buildings of Nashville that ... much that when I needed to relocate to Nashville, there was no question that ...
Breaking Medicine News(10 mins):
(Date:2/11/2016)... 11, 2016 AAIPharma Services Corp./Cambridge Major ... manufacturing and development services for the pharmaceutical and ... and capacity in its Charleston, SC ... driven several recent investments. Charleston ... filling line with small-scale lyophilization. The site has ...
(Date:2/11/2016)... PORTLAND, Ore. , Feb. 11, 2016 /PRNewswire/ ... pleased to announce the acquisition of SolutionsRx, a full-service ... access hospitals. Along with providing traditional contract pharmacy services, ... to assist clients in navigating the complex 340B regulatory ... of Wellpartner. --> James R. Love , ...
(Date:2/11/2016)... 11 de fevereiro de 2016  A Proliant ... fábrica de soroalbumina bovina (BSA -- Bovine ... fica na Ilha Norte da Nova Zelândia, em ... estabelecido na fábrica da Proliant nos EUA, localizada ... projeto e instalação dos equipamentos foram feitos de ...
Breaking Medicine Technology: