Memorial Health Care in Tennessee to Pay $1.28M for Alleged Stark Law Violations

Chattanooga, Tenn.-based Memorial Health Care System has agreed to pay roughly $1.28 million to settle alleged violations of the False Claims Act and other federal laws.

Beginning as early as January 2003, Memorial allegedly entered into financial agreements with certain physicians and practices. These arrangements provided financial benefits to physicians allegedly designed to induce referrals to Memorial facilities. The alleged arrangements are in violation of Stark Law and the Anti-Kickback Statute, and they resulted in the submission of false claims to Medicare.

In early 2009, the U.S. Attorney's Office for the Eastern District of Tennessee, the Department of Justice and the HHS' Office of Inspector General launched a comprehensive investigation into Memorial.

After the investigation began, but before being notified of it, Memorial contacted government officials to report its discovery of potential Stark Law and Anti-Kickback Statute violations. Soon afterward, Memorial learned of and began cooperating with the government's investigation.

More Articles on Hospital Lawsuits and Settlements:

Employees Sue Truman Medical Center in Kansas City Over Pension Plans
Texas Radiologists to Pay $650K to Resolve Kickback Allegations
Radiology Group Sues St. Peter's Hospital in Montana Over Staff Privileges

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