The settlement with the federal government and state of California resolves allegations that Adventist improperly paid physicians who referred patients to White Memorial by transferring assets at less than fair market value. Those assets allegedly included medical and nonmedical supplies and inventory.
White Memorial also allegedly paid referring physicians compensation that the United States contended was above fair market value to provide teaching services at its family practice residency program.
Approximately $11.5 million of the settlement will be paid to the federal government, most of which will benefit the Medicare Trust Fund. The remaining $2.6 million will be paid to California’s Department of Health Care Services.
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