A South Dakota Surgical Hospital is pay $12.7m to settle allegations that it violated governmental regulations.
Siouxland Surgery Center LLP, which delivers its business practices as Dunes Surgical Hospital (Dunes), United Surgical Partners International Inc. (USPI) and USP Siouxland Inc, is central to the False Claims Act settlement.
USPI, part-owned Dunes, which is embroiled in what the Justice Department reported as, “improper financial relationships between Dunes and two physician groups.”
“Individuals and entities that participate in the federal health care system are required to obey laws designed to preserve the integrity of program funds and ensure the provision of appropriate, quality services to patients,” said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
Siouxland Surgery Center LLP to pay $12.7m to settle allegations
The Civil Division’s Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for the Northern District of Iowa; U.S. Attorney’s Office for the District of South Dakota; and HHS-OIG achieved the settlement figure.
The settlement resolves allegations that Siouxland Surgery Center LLP and its subsidiaries falsely billed Medicare, TRICARE, and Medicaid.
In addition to the $12.76 million to be paid to the federal government, the states of South Dakota, Iowa, and Nebraska will all share a pot of $1.37 million to resolve the Medicaid impact of the healthcare company’s actions in these locations.
“Illegal kickbacks and self-referrals make healthcare more expensive and create the potential for medical decisions that are not based on what is best for patients,” said U.S. Attorney Timothy T. Duax for the Northern District of Iowa.
From 2014 to 2019, Dunes reportedly “made significant financial contributions to a non-profit affiliate of a physician group whose physicians referred patients to Dunes.”
There is also a resolution to the allegations that Dunes offered “free or below-fair-market-value clinic space, staff, and supplies”
According to the United States government, both of these actions taken by the medical services provider are a breach of the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law.
“The AKS and Stark Law are designed to ensure that decisions about patient care are based on physicians’ independent medical judgment and not their personal financial interest,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As this settlement reflects, we will hold accountable those who violate these important safeguards, but we will also give to those who disclose their wrongdoing, take appropriate remedial actions and meaningfully cooperate with the government’s investigation.”
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