MediSys Health Network, which owns and operates two New York City hospitals, has agreed to pay $4 million to settle allegations it violated the False Claims Act and Stark Law, according to the Department of Justice.
The government alleged MediSys, which operates Jamaica Hospital Medical Center and Flushing Hospital Medical Center, had improper financial relationships with referring physicians that did not comply with the requirements of Stark Law. The government further alleged MediSys submitted false claims to Medicare for services provided to patients referred by physicians it had improper financial connections with.
The allegations against MediSys were originally brought under the qui tam, or whistle-blower, provisions of the False Claims Act.
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