The Jacksonville, Florida-based health system self-disclosed the improper discounts to encourage patient referrals.
Baptist Health System Inc. will pay $1.5 million to settle self-reported allegations that its subsidiaries offered illegal discounts to patients to induce them to buy or refer Medicare services to the Jacksonville, FL-based provider, the U.S. Department of Justice says.
According to the settlement, Baptist Health subsidiaries gave discounts of 50% or more to Medicare patients from 2016 through mid-2022 "in exchange for the beneficiaries' purchase or referral of services by certain categories of Medicare beneficiaries from Baptist Health subsidiaries. The beneficiaries were chosen by Baptist Health "without regard to any financial need consideration."
DOJ noted that Baptist Health voluntarily self-disclosed the improprieties, cooperated with the investigation and took remedial measures, including discontinuing its discount policy, conducting an internal compliance review and providing federal regulators with a detailed disclosure statement and other supplemental information.
"Self-disclosures like this not only help crucial federal healthcare programs to recoup funds, but are also in the best interests of healthcare providers themselves," Roger B. Handberg, U.S. Attorney for the Middle District of Florida, says in a media release.
Baptist Responds
Baptist issued this statement. "Upon review of its payment practices, Baptist Health made a voluntary self-disclosure of outdated courtesy discount practices. The self-disclosure process encourages transparency and facilitates the resolution of matters that potentially violate federal laws, and it aligns with our commitment to do the right thing. This settlement reaffirms our dedication to compliantly delivering high-quality care."
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
Baptist Health subsidiaries gave discounts of 50% or more to Medicare patients in exchange for their purchase or referral of Medicare services.
The beneficiaries were chosen by Baptist Health 'without regard to any financial need consideration.'
DOJ noted that Baptist Health voluntarily self-disclosed the improprieties, cooperated with the investigation and discontinued the discount policy.