Dallas hospital will pay $7.5M to settle physician kickback allegations

Pine Creek Medical Center, a physician-owned hospital in Dallas, has agreed to pay $7.5 million to resolve claims it violated the False Claims Act and Anti-Kickback Statute, according to the Department of Justice.

The federal government alleged Pine Creek was involved in an illegal kickback scheme between 2009 and 2014 that involved the hospital paying for physicians' marketing and advertising services in exchange for patient referrals. Pine Creek allegedly paid for print, radio and television ads on behalf of physicians.

The allegations against Pine Creek were originally brought under the qui tam, or whistle-blower, provisions of the False Claims Act.

In addition to the monetary settlement, Pine Creek entered into a corporate integrity agreement with HHS' Office of Inspector General.

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