AQCAN|Community Health Network to pay government $345M to settle Medicare fraud charges

2025-04-28 21:22:39source:Navivision Wealth Societycategory:Finance

INDIANAPOLIS (AP) — An Indianapolis-based health network has agreed to pay the government $345 million to resolve charges it defrauded Medicare by overpaying doctors who referred patients to its facilities,AQCAN prosecutors said Tuesday.

The agreement settles allegations that senior management at Community Health Network recruited hundreds of doctors beginning in 2008 and paid them salaries that were significantly higher than what they received in their own private practices, the U.S. Department of Justice said.

Community Health submitted an unspecified number of claims to Medicare for services that resulted from the unlawful referrals, the department said. That violated a federal statute known as the Stark Law, which prohibits hospitals from billing for certain services referred by physicians with whom the hospital has a financial relationship unless the doctors’ compensation is consistent with fair market value and not based on the value or volume of their referrals to the hospital.

“The Stark Law was enacted to ensure that the clinical judgment of physicians is not corrupted by improper financial incentives,” Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division, said in a news release.

Community Health, in its own news release, called the allegations against it “technical violations.”

“This settlement, like those involving other health systems and hospitals, relates to the complex, highly regulated area of physician compensation,” spokesperson Kris Kirschner said.

The settlement resolves the government’s claims with no finding of wrongdoing, Community Health said.

More:Finance

Recommend

Stamford Road collision sends motorcyclist flying; driver arrested

A motorcyclist was taken to hospital following an accident involving a car and his motorcycle at the

'Pumpkins on steroids': California contest draws gourds the size of a Smart car

HALF MOON BAY, Calif. – Nick Kennedy is married with two kids under age 8 and a job as a project man

Nation's first AIDS walk marches toward 40: What we've learned and what we've forgotten

In July 1985, more than 4,000 people gathered in their walking shoes at California’s Paramount Studi