HealthSouth and physicians agrees to repay $14.9M
Healthcare Auditing Weekly, December 18, 2007
HealthSouth Corporation and two physicians have agreed to repay the government $14.9 million to resolve allegations of fraud.
HealthSouth allegedly submitted false claims to the government and paid kickbacks to physicians who referred patients for care at a variety of HealthSouth facilities, according to the Department of Justice (DOJ).
The settlement stems from disclosures made by HealthSouth in 2004 and 2005 to U.S. Attorney for the Northern District of Alabama, Alice Martin, and the Office of Inspector General. Under the agreement, HealthSouth with repay $14.2 million and the physicians will pay a total of $700,000 under separate settlement agreements.
HealthSouth allegedly referred patients to orthopedic surgeons Drs. James Andrews and Lawrence Lemak of Birmingham when HealthSouth had financial relationships with the physicians, their former partnership, and their research and training foundation. Those referrals allegedly violated the Medicare and Medicaid Anti-Kickback Statute and the Stark Law.
Click here to read the DOJ's press release.
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