The AP (12/2) reports, "A suburban Chicago medical center has agreed to pay $36 million to resolve issues related to improper payments, leases and loans to physicians, the U.S. attorney's office in Chicago said Monday." According to U.S. Attorney Patrick Fitzgerald, "Condell Health Center in Libertyville voluntarily disclosed the improper payments from Medicare and Medicaid programs and avoided a lawsuit under the federal False Claims Act." Among the violations are "the lease of medical office space below fair market value, improper loans to physicians, and payments to doctors who performed 'patient services without required written agreements.'"
"Such deals were in violation of federal laws that essentially prohibit hospital payments to doctors for patient referrals," the Chicago Tribune (12/1, Japsen) added. The deals resulted in "millions of improper payments to the hospital from the Medicare health insurance program for the elderly and the state Medicaid health insurance program for the poor." The improper payments were "uncovered in the process of the medical center's due diligence with Advocate Health Care." Under the agreement, the hospital will "pay the federal government $33.12 million to resolve claims related to Medicare and $2.88 million to resolve claims related to Medicaid." The settlement "relates to contracts between Condell and medical staff members from 2002 through 2007," the Chicago Daily Herald (12/2, Zawislak) notes.
"The agreement, which does not constitute an admission of liability on Condell's part, comes on the same day the 283-bed hospital closed a previously announced $180 million deal to become the ninth hospital in Advocate Health Care," according to Modern Healthcare (12/2, Blesch). Crain's Chicago Business (12/1, Colias) also covered the story.
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