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OIG excludes medical center due to kickback violations

Physician Practice Advisor, May 10, 2006

The Office of Inspector General (OIG) has notified Alvardo Hospital Medical Center and its parent company, Tenet HealthSystem Hospitals, Inc., that Alvardo will be excluded from participation in Medicare, Medicaid, and all other federal health programs based on the OIG's allegation that the medical center knowingly paid kickbacks to induce patient referrals, according to an OIG press release.

The OIG claims Alvarado entered into physician relocation agreements through which the organization funneled money to existing physician practices in the San Diego area in exchange for patient referrals.

"Today's announcement should be a continuing reminder to health care providers that referrals of federal healthcare program beneficiaries should be based on the quality of care that is to be provided to the beneficiary, and not as a result of a financial benefit to be realized by the source of the referral or the practitioner providing the services," Inspector General Daniel R. Levinson said in the press release.

Click here to read the OIG press release.

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