$27.5M Settles Universal Health Kickback Suit

Law360, New York (November 2, 2009, 6:25 PM EST) -- A Texas subsidiary of Universal Health Services Inc. has agreed to fork over $27.5 million to settle the U.S. Department of Justice’s allegations it paid kickbacks to doctors who referred patients to its hospitals.

On Friday, the Justice Department announced that McAllen Hospitals LP, part of the Universal Health organization in southern Texas, opted to pay the millions rather than fight allegations it drummed up business by paying doctors to send patients to the member hospitals.

Between 1999 and 2006 the defendant arranged sham contracts with...
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