Indiana hospital owner will pay $3.6M to settle physician kickback allegations

Rialto Capital Management and one of its former affiliates have agreed to pay $3.6 million to resolve allegations that they violated the Anti-Kickback Statute, Stark Law and the False Claims Act, according to the Department of Justice.

RL BB-IN KRE, a former affiliate of Rialto, owned and managed Clarksville, Ind.-based Kentuckiana Medical Center until November 2018. The hospital closed in April.

The settlement resolves allegations that KMC, under the direction of Rialto, had improper financial arrangements with two physicians who referred patients to KMC. The hospital allegedly made personal loans to the two physicians but never asked them to repay the funds.

The allegations against Rialto and RL BB-IN KRE were originally brought in a whistleblower lawsuit filed under the False Claims Act.

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