Westerly Hospital to Pay $500k for Allegedly Improper Physician Arrangements

Westerly (R.I.) Hospital will pay the federal government $500,000 after an investigation identified potentially improper agreements between the hospital and physicians, according to a Westerly Sun report.

Fifty physicians were named in the settlement agreement, which stems from nine potentially improper agreements between the hospital and physicians. The allegations include Westerly failing to document and update lease agreements, and failing to maintain records of compensation agreements with physicians who were assigned to leadership positions, according to the report.

The settlement agreement covers 1997 to March 2013.

Mark Russo, JD, managed Westerly through its receivership period and said the settlement stems from problems with the previous administration. "It's not the doctors," Mr. Russo said in the report. "The prior administration completely missed the bus on this type of compliance."

Westerly was in receivership from December 2011 until it was officially acquired by New London, Conn.-based Lawrence + Memorial Hospital earlier this month.

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