Corporate Compliance

OK Health System self-discloses Stark violations

Compliance Monitor, December 30, 2009

St. John Health System in Tulsa, OK, agreed to pay the federal government $13.2 million to settle allegations that the organization made illegal incentive payments to 23 physicians, according to a HealthLeaders Media article.

In April 2008, St. John conducted an internal audit and found that the incentive payments it gave to referring physicians were considered a financial arrangement. The Stark Law prohibits hospitals from billing Medicare for services that were provided by a physician with which the hospital has a financial relationship. The Anti-Kickback Statute also prohibits hospitals from making payments to physicians to induce referrals.

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