The Stark Law prohibits physicians from referring patients to hospitals or clinics they have financial relationships with.
This article was originally published on the Credentialing Resource Center, June 21, 2017.
To settle allegations they engaged in improper financial relationships with referring physicians, Mercy Hospital Springfield (Missouri) and its affiliate Mercy Clinic Springfield Communities have agreed to pay a $34 million settlement.
The complaint against the two alleged that they violated the Stark Law by submitting claims to Medicare for chemotherapy services rendered to patients referred by certain oncologists from 2009 to 2014. The compensation formula for the oncologists in question improperly accounts for their referrals of patients to Mercy Hospital’s infusion center.
The Stark Law prohibits physicians from referring patients to hospitals or clinics they have financial relationships with.
Special Agent in Charge Steven Hanson, for the Department of Health and Human Services Office of Inspector General, said in a statement, “When physician compensation improperly accounts for referrals, patients are left to wonder whether their doctor’s judgment has been tainted and motivated by financial interests. … Illegal financial reward has no place in healthcare.”
Mercy’s payment settles a whistleblower lawsuit filed by Viran Roger Holden, MD, who was employed by Mercy. Holden will receive nearly $5.5 million from the settlement.
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