Somerset Medical Center Settles Kickback Allegations

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Somerville, N.J.-based Somerset Medical Center has agreed to pay $435,640 to settle allegations it violated the Anti-Kickback Statute and False Claims Act by making improper rental payments to a cardiology group in exchange for referrals, according to the Department of Justice.

The government alleged Somerset Medical Center paid Hillsborough, N.J.-based Medicor Cardiology rental payments that exceeded fair market value for leased space from Oct. 1, 2006, to Sept. 30, 2013. The government further alleged Somerset Medical Center billed Medicare for services provided to patients who were referred based on the improper payments to Medicor, according to the report.

The lawsuit against Somerset Medical Center was filed by two of its former employees under the qui tam, or whistle-blower provision, of the False Claims Act.

Although Somerset Medical Center has agreed to settle the allegations, the medical center has not admitted any liability, according to the report.

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