Nation - Ohio Hospital to pay $108M settlement

CINCINNATI (AP) -- A Cincinnati-area hospital has agreed to pay the federal government $108 million to settle claims that it illegally gave cardiologists financial incentives to refer heart patients to the hospital, the U.S. Department of Justice said. The agreement announced Friday stems from a lawsuit filed in 2003 by Dr. Harry Fry, who accused Christ Hospital of improperly assigning doctors time in an outpatient cardiology testing unit based on the amount of money the doctors generated for the hospital through referrals. Fry. who left the hospital in 2000, is to receive $23.5 million of the settlement as a whistle-blower. "I think he does feel vindicated," said his lawyer, Glenn Whitaker. "He complained about this as early as 1996 and nothing was done about it." The hospital and the Health Alliance of Greater Cincinnati, which included Christ Hospital at the time of the allegations, have agreed to pay the settlement. The 555-bed Mount Auburn hospital has denied wrongdoing. Chief Executive Susan Croushore said in a statement that no unnecessary tests were performed and no improper charges were made. "While the Christ Hospital continues to disagree with the government's allegations ... we decided to contribute to the joint settlement agreement ... instead of risking a potential catastrophic judgment that could jeopardize our ability to provide service to this community," she said. The government, which joined Fry's suit in 2008, said the alliance and hospital were accused of violating anti-kickback and false claims laws in a "pay-to-play scheme" by limiting work at the testing unit to cardiologists who referred business to the hospital. The government said cardiologists using the unit benefited from billing patients they took and treated as a result of working there. "Health care providers should make medical decisions based on the needs of their patients, not on the financial interests of physicians or other providers," said Tony West, assistant attorney general for the Civil Division of the Department of Justice. "We will not allow hospitals to put profits ahead of sound medical decision-making." Documents in the case showed that cardiology services are the most lucrative for the hospital, generating as much as one-third of its total surplus, and that hospital officials were warned in the mid-1990s that the questioned practices might be illegal. The Department of Health and Human Services' Office of Inspector General is further evaluating the matter. Published: Tue, May 25, 2010

––––––––––––––––––––
 Subscribe to the Legal News!
 https://test.legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available