Relevant Links
DOJ Lawsuit Highlights Stark Law Compliance Risks for Healthcare Providers
The Department of Justice (DOJ) has filed a False Claims Act (FCA) lawsuit against a public health system, alleging Stark Law violations due to excessive physician compensation. The Stark Law prohibits physicians from referring patients to entities they have financial ties to, aiming to prevent fraud and financial conflicts of interest in federal healthcare programs.
This case reflects increased government enforcement against healthcare providers accused of inflating physician pay to drive referrals. If proven, these violations could result in millions in fraudulent Medicare and Medicaid payments.
➡ Read the full article at Becker’s ASC Review (Published August 14, 2024).
DOJ Investigates Public Health System for Stark Law Violations
The DOJ’s lawsuit raises concerns about hospitals and health systems improperly compensating physicians. According to the complaint, the public health system engaged in financial agreements that compromised medical decision-making and misused taxpayer funds.
These allegations are part of a wider trend in FCA enforcement, showing that physician compensation compliance remains a high-risk area for federal scrutiny.
➡ Read the full article at The National Law Review (Published August 14, 2024).
DOJ Sues Erlanger Health System Over Alleged Stark Law Violations
The DOJ’s False Claims Act lawsuit against Erlanger Health System focuses on compliance concerns and claims that hospital leadership prioritized physician relationships over regulatory compliance.
“This was really kind of deep-rooted—that compliance played a very weak sister to keeping referring doctors happy,” said whistleblower attorney Marlan Wilbanks, who represents the case’s whistleblower.
This case is part of a broader DOJ crackdown on healthcare fraud, targeting financial arrangements that could lead to improper billing practices. If violations are confirmed, Erlanger could face major financial penalties and reputational damage.
➡ Read the partial article in Report on Medicare Compliance, Volume 33, Number 28 (Published August 5, 2024).