Corporate Compliance

Tennessee hospital agrees to $40 million settlement

Compliance Monitor, October 26, 2005

Erlanger Medical Center in Chattanooga, TN, agreed Monday to pay a $40 million settlement to end federal allegations that hospital officials violated the federal Stark law and anti-kickback statute.

The medical center has also agreed to operate under a five-year corporate integrity agreement. The settlement states that Erlanger paid remuneration anticipating to induce physicians to refer patients to its facilities, according to

"Today's settlement is an example of the Justice Department's determination to enforce the Ethics in Patient Referrals Act and to protect the Medicare and Medicaid trust funds to ensure that these programs remain viable," said U.S. Attorney Sandy Mattice.

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