Texas hospital to pay $21.75M to settle Stark Law allegations

Citizens Medical Center in Victoria, Texas, has agreed to pay the federal government $21.75 million to settle allegations it violated the False Claims Act and Stark Law by having improper financial relationships with referring physicians, according to the Department of Justice.


The lawsuit claimed Citizens Medical Center paid several cardiologists in excess of the fair market value of their services. The lawsuit further alleged the hospital paid bonuses to emergency room physicians that "improperly took into account the value of their cardiology referrals," according to the DOJ.


The lawsuit was filed under the qui tam, or whistle-blower, provision of the False Claims Act.

Although the hospital has agreed to this settlement, there has been no admission of wrongdoing.

More articles on healthcare industry lawsuits:

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