Cooper Health in N.J. Agrees to $12.5M Settlement for Alleged Kickbacks

Camden, N.J.-based Cooper Health System has agreed to a $12.5 million settlement to resolve federal and state allegations of kickbacks, according to a Bloomberg report.

The system allegedly violated the False Claims Act by making improper payments to physicians for "consulting" and "compensation" agreements, according to the report. These payments were allegedly made while Cooper Health was building its cardiology program.

The U.S. and New Jersey governments claimed those payments to physicians, which allegedly occurred from October 2004 through December 2010, were designed to induce referrals. Prosecutors claimed Cooper's later charges to Medicare and Medicaid were "tainted" due to the violation of federal and state anti-kickback laws, according to the report.

Cooper agreed to pay $10.3 million to the U.S. government and $2.3 million to New Jersey, according to the report.

More Articles on Hospitals and Settlements:

Judge: WakeMed's Settlement Proposal Too Small for False Claims Allegations
Jackson Purchase Medical Center Settles False Claims Charges With $850k
Wayne Medical Center in Tennessee Agrees to $883k Settlement

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