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

Listen
Text
  • Small
  • Medium
  • Large

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.

More articles on legal and regulatory issues:

Texas patient recruiter gets prison time for role in $20M Medicare fraud scheme
Healthcare CEO sentenced to prison in bribery case
Legal challenges mount against religious freedom rule for healthcare workers

Copyright © 2021 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars