NY hospital to pay $18.8M to settle kickback allegations

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Valhalla, N.Y.-based Westchester Medical Center has agreed to pay the federal government $18.8 million for its alleged violation of the Anti-Kickback Statute and Stark Law, according to the Department of Justice.

In its complaint, the government alleged WMC advanced funds to Cardiology Consultants of Westchester, a cardiology practice formerly operating on WMC's campus. The funds were allegedly used to open a cardiology practice for the purpose of generating referrals to the hospital. The complaint further alleged WMC allowed the cardiology practice to use WMC's fellows in its office free of charge, according to the DOJ.

Dan Bisk, WMC's former compliance officer, originally brought the lawsuit under the qui tam, or whistle-blower, provision of the False Claims Act, according to Reuters.

WMC released a statement regarding the settlement saying, "Although the Medical Center believes that its financial relationships with its clinical faculty are customary for academic medical centers of its size and complexity, we acknowledge that, with respect to a very small number of legacy relationships, we could not produce documentation sufficient to meet certain technical requirements of federal law," according to Reuters.

More articles on healthcare industry lawsuits:

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