Corporate Compliance

Detroit Medical Center pays $30 million to settle False Claims Act allegations

Compliance Monitor, January 5, 2011

Detroit Medical Center agreed to pay the United States $30 million to settle allegations that it violated the False Claims Act, the anti-kickback statute, and the Stark Law by engaging in improper financial relationships with referring physicians, according to a Department of Justice (DOJ) press release.

Most of the relationships involved office lease agreements and independent contractor relationships that were either inconsistent with fair market value or not memorialized in writing, according to the DOJ.

Detroit Medical Center discovered the improper financial relationships with a number of physicians as it prepared for the sale to Vanguard Health Systems Inc., and voluntarily disclosed the violations to the government.

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