St. Mary Medical Center to Pay $2.3M to Resolve Alleged Overpayments to Physicians

St. Mary Medical Center in Langhorne, Pa., has agreed to pay $2.3 million to the government to resolve allegations that it improperly administered several physician income guarantee agreements.

The 374-bed hospital self-disclosed the matter and an investigation followed. From January 2005 through August 2010, SMMC had 15 physician income guarantee agreements for recruited physicians and allegedly failed to properly administer the terms of the recruitment contracts. As a result, certain recruited physicians allegedly received net overpayments.

"Because those physicians and their practices referred patients to SMMC for medical treatment that was billed to federally funded programs, the United States alleges that false claims were submitted to the government," according to the release.  

The hospital has taken corrective action to resolve the payments, according to the release.

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