King's Daughters Medical Center to Pay Nearly $41M in Landmark Case

Ashland, Ky.-based King's Daughters Medical Center has agreed to pay the government $40.9 million to resolve allegations it made millions by performing medically unnecessary heart procedures on patients, according to the Department of Justice.

In its lawsuit, the government alleged KDMC physicians performed numerous unnecessary coronary stents and diagnostic catheterizations on patients from 2006 to 2011. The government further alleged the physicians falsified patients' medical records to justify the medically unnecessary heart procedures, which allowed KDMC to receive millions of dollars in fraudulent reimbursements from Medicare and Medicaid, according to the report. 

The settlement also resolves allegations KDMC engaged in improper financial relationships with physicians in violation of the Stark Law.

This is the largest settlement involving a hospital in the history of the Eastern District of Kentucky, according to the report.

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