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