tci Part B Insider - 2010 Issue 25

Compliance: Physician-Owned Business Settles Stark and Anti-Kickback Allegations for Over $7 Million

Plus: Stark under-arrangement law changes may alter how you can do business.Trading cash payments for patient referrals might temporarily make a company financially flush -- but eventually, it will cause nothing but problems. Why? Because under the Federal anti-kickback and Stark laws, such referrals are illegal.Earlier this month, a group of physician-owned urology centers that provided hospitals with lithotripsy and laser services/equipment entered into a Civil Monetary Penalty settlement agreement with the OIG, resulting in a $7.3 million settlement, according to a July 8 OIG news release.The OIG alleged that the company "and certain of...

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