Ky. hospi­tal to pay $41 mil­lion to set­tle false-claims charges

Modern Healthcare - - REGIONAL NEWS - —Beth Kutscher

King’s Daugh­ters Med­i­cal Cen­ter has fi­nal­ized a set­tle­ment with the U.S. Jus­tice Depart­ment that re­solves al­le­ga­tions that it per­formed un­nec­es­sary car­diac pro­ce­dures and had in­ap­pro­pri­ate fi­nan­cial re­la­tion­ships with re­fer­ring physi­cians.

The Ash­land, Ky.-based hospi­tal, the largest in the state, had dis­closed in its 2013 an­nual re­port that it was in ne­go­ti­a­tions for the $40.9 mil­lion set­tle­ment.

“The set­tle­ment is not an ad­mis­sion of wrong­do­ing on be­half of the med­i­cal cen­ter,” the hospi­tal said in a writ­ten state­ment.

The Jus­tice Depart­ment al­leged that be­tween 2006 and 2010, King’s Daugh­ters billed Medi­care and Med­i­caid for nu­mer­ous un­nec­es­sary coro­nary stents and di­ag­nos­tic catheter­i­za­tions. More­over, it claimed that physi­cians fal­si­fied med­i­cal records to jus­tify the un­nec­es­sary pro­ce­dures. The set­tle­ment also cov­ers al­le­ga­tions that King’s Daugh­ters vi­o­lated the Stark law by pay­ing cer­tain car­di­ol­o­gists un­rea­son­ably high salaries.

King’s Daugh­ters’ set­tle­ment in­volves billing al­le­ga­tions dat­ing to 2006.

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