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MT hospital to pay $3.85 million for violating anti-kickback statute

The Montana Standard, January 2, 2014

St. James Healthcare has agreed to pay a $3.85 million fine for paying doctors to make referrals to the hospital, the U.S. Justice Department announced Tuesday. The settlement resolves allegations that St. James — and its parent company, Sisters of Charity of Leavenworth Health System — violated the Anti-Kickback Statute, the Stark Law and the False Claims Act in 2005. The violations came to light after the Butte hospital willingly disclosed financial discrepancies that were made in a 2005 partnership agreement between a group of physicians and the hospital, said Chuck Wright, St. James CEO in a prepared statement Tuesday.