tci Medicare Compliance & Reimbursement - 2003 Issue 29

Hospitals: Can A Physician Relocation Agreement Be A Kickback?

Feds slap Tenet facility with criminal charges. In what could prove to be the beginning of a high stakes kickback prosecution with ramifications affecting hospitals and physicians nationwide, a federal grand jury July 17 indicted a California hospital on criminal kickback charges. According to U.S. Attorney Carol Lam, the 17-count indictment accuses Alvarado Hospital Medical Center and Tenet Health System Hospitals Inc. of paying for referrals through physician relocation agreements. The indictment says that between 1992 and 2002, Tenet and Alvarado paid more than $10 million to fund over 100 physician relocation agreements. The agreements on their face...

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