Memorial Health agreed to pay $5.08 million to resolve allegations that it paid excessive fees to physicians, well above fair market value, in violation of federal law. The whistleblower lawsuit, filed by Wilbanks & Gouinlock (W&G) on behalf of a physician with insider knowledge, revealed a pattern of improper physician compensation in the Savannah, Georgia area.
The whistleblower, a local physician, discovered that Memorial Health was offering illegal financial incentives to other doctors in exchange for patient referrals. These payments exceeded what is legally allowed and violated the Stark Law, which prohibits hospitals from compensating physicians in ways that could influence referral decisions.
The improper physician compensation scheme led to a $5.08 million government recovery, reinforcing the serious consequences of violating federal healthcare laws. This case is a strong example of how whistleblowers play a crucial role in uncovering and stopping improper physician compensation practices that compromise healthcare integrity.
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