A settlement has been reached to resolve False Claims Act allegations against Mercy Health.
The allegations arose from a lawsuit that claimed Mercy Health engaged in improper financial relationships with referring physicians.
According to the government, Mercy Health self-disclosed improper financial relationships with referring physicians including one oncologist and five internal medicine physicians who received compensation that exceeded fair market value for their services.
“When physicians are rewarded financially for referring patients to hospitals or other health care providers, it can affect their medical judgment, resulting in overutilization of services and higher health care costs,” said Acting Assistant Attorney Chad A. Readler, head of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
Federal law restricts the financial relationships that hospitals may have with doctors who refer patients to them.
