Two New York Hospitals Pay $2.6M to Settle Physician Self-Referral Violations

Two hospitals within New York's Catholic Health Services of Long Island system have agreed to pay a total of $2.6 million for physician contracts that did not comply with federal regulations, according to a Long Island Business News report.

The system said it identified the noncompliance internally and reported it voluntarily. The Office of Inspector General said the violations fell under civil monetary penalties applicable to physician self-referrals and kickbacks.

St. Catherine of Siena Medical Center in Smithtown will pay about $2.59 million and Good Samaritan Hospital Medical Center in West Islip will pay $55,000.

A CHS official attributed the violations to a misunderstanding, saying there was no intent "to create a relationship with these physicians that did not conform to government relations," according to the report. Financial arrangements with the physicians have since been modified.

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