St. John allegedly made payments to 23 different physicians or physician groups to induce referrals for medical services.
The False Claims Act prohibits healthcare providers like St. John from billing a federal healthcare program, such as Medicare or Medicaid, for services resulting from referrals by physicians who have a financial relationship with the facility, unless that relationship falls within certain exceptions. Additionally, the federal Anti-Kickback Statute prohibits the payment of kickbacks for the referral of services that are paid for under a federal healthcare program.
In April 2008, St. John submitted a self-disclosure report to the Department of Health and Human Service’s Office of Inspector General that acknowledged that the physician agreements may have run afoul of federal law, according to the release.
The settlement announced today resulted from the company’s disclosure.
Read the DOJ’s release on the St. John Health System False Claims settlement.
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