Faulty Referrals Cost Mo. Hospital Network $9M In FCA Case

Law360, New York (November 5, 2012, 3:17 PM EST) -- A Missouri hospital network will pay $9.3 million to resolve False Claims Act and Stark Law violations related to improper financial arrangements with referring physicians that resulted in possible overbilling of Medicare, the U.S. Department of Justice said Monday.

Freeman Health System, a nonprofit that operates three hospitals in southwest Missouri, voluntarily disclosed it had been offering incentive payments to doctors that may have affected the number and cost of referrals they made, federal authorities said. Seventy physicians at health clinics operated by Freeman were paid...
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