OIG settles with physician-owned centers for $7.3 million civil penalty

by Astrid Fiano, DOTmed News Writer | July 19, 2010

OIG is part of HHS

The Office of Inspector General (OIG) for the Department of Health and Human Services has entered into a Civil Monetary Penalty settlement agreement with United Shockwave Services, United Prostate Centers, and United Urology Centers ("United"), all in Des Plains, IL. The agreement settles OIG charges that United violated federal anti-kickback laws in both soliciting and receiving payments from hospitals in several states, in exchange for patient referrals.

According to the OIG's press release, United also allegedly caused some hospitals to submit claims resulting from prohibited referrals in violation of the Physician Self-Referral Law (known as the "Stark" law).

In addition to the $7.3 million civil penalty settlement, United entered into a five-year Corporate Integrity Agreement (CIA) with the OIG. The CIA states that United will establish and maintain a Compliance Program that includes a compliance officer and written standards of code of conduct. Within 90 days after the effective date of the CIA, United must implement written policies and procedures addressing the federal Anti-Kickback Statute and Stark Law; regulations and other guidance documents related to these statutes; and business or financial arrangements or contracts that generate unlawful federal health care program business in violation of the Anti-Kickback Statute or the Stark Law. United will also implement a training and education program on the Stark Law and anti-kickback compliance.

United is also required to hire an Independent Review Organization to perform a review assisting United in assessing its compliance with the Anti-Kickback statute and Stark law. Under the settlement agreement, United has denied any liability.

The original investigation was conducted by OIG attorneys Brian Bewley, Kevin Barry, Tamara Forys, and OIG Special Agent Raul Sese.

"The settlement with United Shockwave demonstrates the Office of Inspector General's intent to ensure that federal health care program beneficiaries do not become a tradable business asset when companies solicit and negotiate contracts with hospitals or other medical centers," OIG attorney Brian Bewley told DOTmed News. "OIG will investigate and pursue the responsible parties when we believe this conduct is occurring."

Adapted in part from an OIG press release.