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HCA - Parkridge Fined $16.5 Million
HCA Inc., one of the nation’s largest private hospital chains, has agreed to pay $16.5 million to settle alleged violations of the Ethics in Patient Referrals Act (also known as the Stark law), the False Claims Act, and other federal and state laws and regulations in connection with the operation of its subsidiary, Parkridge Medical Center, Inc., in Chattanooga. In addition, Parkridge Medical Center has entered into a comprehensive five-year Corporate Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG) to ensure its continued compliance with federal health care benefit program requirements.
During 2007, HCA, through its subsidiaries Parkridge and HCA Physician Services (HCAPS), entered into a series of financial transactions with a physician group, Diagnostic Associates of Chattanooga, through which it provided financial benefits intended to induce the physician members of Diagnostic to refer patients to HCA facilities. The financial benefits included lease of office space from Diagnostic at a rental rate well in excess of fair market value to meet the mortgage obligations of the Diagnostic members and release of Diagnostic members from a separate lease obligation. These financial arrangements violated the Ethics in Patient Referrals Act and the Anti-Kickback Statute – laws designed to protect patients as well as the integrity of government-funded health care benefit programs such as Medicare, Medicaid, TRICARE, and TennCare.
As U.S. Attorney Bill Killian explained, “Physicians should make decisions regarding referrals to health care facilities based on what is in the best interest of patients without being induced by payments from hospitals competing for their business.”
Federal law prohibits hospitals from submitting claims to government-funded health care benefit programs for inpatient and outpatient hospital services referred, ordered, or arranged for by physicians who have prohibited financial arrangements with those hospitals.
"We will not allow hospitals to provide financial incentives to induce physicians to steer patients their way," said Derrick L. Jackson, Special Agent in Charge, HHS-OIG in Atlanta. "These arrangements can corrupt medical decision-making and may result in unnecessary diagnostic testing and hospital admissions."
During the period from 2007 through 2011, HCA through Parkridge, submitted or caused to be submitted claims to Medicare, TRICARE, and TennCare/Medicaid for inpatient and outpatient hospital services referred, ordered or arranged for by the Diagnostic physician members who benefitted from the prohibited financial arrangements between HCA Diagnostic. Medicare and the other health care benefit programs paid the claims for those hospital services, and this settlement addresses the financial harm to the Medicare and Medicaid trust funds, TriCare and TennCare for the moneys paid out of those funds which HCA improperly claimed and received during that time period. Under the False Claims Act, a recipient of such funds may be liable for as much as three times the amount paid by the government program plus civil penalties.
The determination of the losses suffered by the government in a False Claims Act case based on violations of the Stark law depends largely upon the number of physicians who benefitted from the financial arrangements with the hospital, the number of patients referred by those physicians to the hospital, and the amount paid by the government to the hospital for claims submitted for all those patients. The False Claims Act further provides for trebling of any losses and penalties of between $5,500-$11,000 per claim.
“Today's settlement is the third since 2005 involving violations by hospitals in Chattanooga of the Ethics in Patient Referrals and False Claims Acts and reflects the Justice Department's continued determination to enforce these laws to protect both patients and the Medicare and Medicaid trust funds,” said U.S. Attorney Killian. Mr. Killian further noted that this settlement resulted from a comprehensive investigation which began as a result of a qui tam or whistleblower complaint filed in 2008. After an administrative subpoena was served on HCA subsidiaries in July 2009, HCA produced documents to the United States and made its personnel available for interviews.
"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military health care program, continues to provide safe and superior medical care to America's Warfighters and their families." said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service- Southeast Field Office. "The successful resolution of this case demonstrates the effectiveness of joint investigations to combat health care fraud and preserve the integrity of this vital program."
Tennessee Attorney General Bob Cooper noted: "We are proud to have worked closely with our federal partners to bring this case to resolution. Combating fraud is essential to the strength and integrity of the TennCare program and is a high priority of this office."
More Business News
Last Update on April 23, 2014 07:29 GMT
TOKYO (AP) -- Shares were mixed in Asia today as weak data from China sapped upward momentum from an overnight rally on a flurry of deals in the pharmaceutical sector.
A preliminary survey of Chinese manufacturers by HSBC showed slight improvements in prices and demand, but contractions in new export orders and employment in April. The results were expected, but helped pull Hong Kong's Hang Seng index down 0.6 percent to 22,592.41. Shares in mainland China also fell.
Sentiment was also buoyed by a solid start for Seibu Holdings Inc. whose shares rose 5 percent in the morning after an initial public offering in its relisting on the Tokyo Stock Exchange.
The dollar was relatively flat against the euro and the yen. Benchmark crude oil fell to near $101.50 a barrel.
THE DAY AHEAD
WASHINGTON (AP) -- It's a busy day for earnings reports, but there's also a fresh gauge of the housing market on the schedule.
The Commerce Department releases figures on sales of new homes last month. Yesterday, the National Association of Realtors said sales of existing homes slipped 0.2 percent, citing a tight supply of available homes and rising prices.
Also today, HSBC releases its monthly flash purchasing managers index for April.
As for earnings, Procter & Gamble, Boeing, Delta Air Lines and Reynolds American release their quarterly financial results before the market opens.
Michelin reports first quarter sales and Ericsson presents its quarterly results.
After the market closes, Apple, Facebook and Safeway release their results.
GENERAL MOTORS-IMPALA INVESTIGATION
DETROIT (AP) -- Federal regulators are investigating the 2014 Chevy Impala after a driver reported that the emergency braking system activated multiple times without warning.
The driver says that in one instance, the Impala was traveling at 40 miles-per-hour with no one in front of it when the brakes activated. The car was rear-ended. No injuries were reported.
The National Highway Traffic Safety Administration opened the investigation to determine whether the alleged defect is widespread. More than 60,000 Impalas of the 2014 model year are on U.S. roads.
The investigation is unrelated to GM's recent recall of 2.6 million older model Chevrolets and other cars for defective ignition switches.
TOKYO (AP) -- Toyota kept its position at the top in global vehicle sales for the first quarter of this year, outpacing rivals General Motors and Volkswagen.
Toyota Motor Corp. said Wednesday that it sold 2.583 million vehicles in the January-March period, ahead of Detroit-based GM at 2.42 million and Volkswagen of Germany at 2.4 million.
The Japanese automaker's first quarter sales rose by more than 6 percent from the same period the previous year. GM's sales grew 2 percent, while Volkswagen's added nearly 6 percent.
Toyota finished first last year with a record 9.98 million vehicles in sales, remaining the top-selling automaker for a second year in a row. General Motors Co. finished second and VW third.
Toyota is targeting sales of more than 10 million vehicles this year.
COAL ASH SPILL-NORTH CAROLINA
RALEIGH, N.C. (AP) -- Duke Energy says that removing all of the company's coal ash away from North Carolina's rivers and lakes would take decades and cost up to $10 billion, with the state's electricity customers likely footing nearly all the bill.
Duke's North Carolina president Paul Newton is telling state lawmakers that the company needs flexibility to consider more cost-efficient options that include leaving much of its 100 million tons of toxic ash in place after being covered with giant tarps and soil.
State officials say all 33 of Duke's unlined dumps are contaminating groundwater.
Environmental groups are calling for new legislation requiring Duke to move its coal ash to lined landfills away from waterways following the massive Feb. 2 spill in Eden that coated 70 miles of the Dan River in gray sludge.
NORTH DAKOTA-FLARING MEETING
BISMARCK, N.D. (AP) -- North Dakota oil companies don't like a proposal that would have the industry cut back on oil production to control the amount of natural gas that's being wasted.
Companies spoke out against the proposal at a hearing yesterday in Bismarck. Instead, the industry wants regulators to consider self-imposed steps to curb natural gas flaring.
North Dakota drillers currently burn off, or flare, a record 36 percent of the valuable gas because development of gas pipelines and processing facilities haven't kept pace with oil drilling.
Oil industry officials have pledged to capture 85 percent of the gas by 2016, and 90 percent within six years as infrastructure catches up with oil development.
Watford City physician Lyle Best says slowing oil development would improve many problems in the state, including flaring.
CANBERRA, Australia (AP) -- Australia has increased its order for F-35 Joint Strike Fighters by 58 to 72 to be fully operational by 2023 in a declaration of confidence in the troubled stealth war plane.
Prime Minister Tony Abbott said Wednesday he expects the additional 58 U.S. jets, developed by Lockheed Martin Aeronautics Co. will cost 12.4 billion Australian dollars ($11.5 billion).
The F-35 is the Pentagon's most expensive weapons program and has been troubled by schedule delays and cost overruns.
Abbott says he is confident that the cost of about AU$90 million per jet will continue to fall with time.
Australia is a funding partner in developing the F-35 and ordered its first 14 jets in 2009.
NEW YORK (AP) -- Twenty-one European cities from Cardiff, Wales, to Stara Zagora, Bulgaria, are finalists in a lucrative innovation contest devised by former New York Mayor Michael Bloomberg.
Bloomberg Philanthropies announced the finalists Wednesday. They will compete for a grand prize of 5 million euros, or nearly $7 million, and four 1 million euro awards. Winners will be announced in the fall.
The cities were asked for projects that could solve major social or economic problems or make government more effective.
A few examples: Amsterdam wants to create an online game to engage unemployed young people in finding jobs across Europe. Madrid wants to make energy out of the heat thrown off by underground infrastructure.
Kirklees, in England, envisions citizens pooling resources ranging from cars to unused space to expertise.
MICROSOFT-BING IN CLASSROOMS
LOS ANGELES (AP) -- Microsoft is expanding a program that gives schools the ability to prevent ads from appearing in search results when they use its Bing search engine. The program, launched in a pilot program earlier this year, is now available to all U.S. schools, public or private, from kindergarten through the 12th grade.
The program is meant to create a safer online environment for children, but also promote use of Bing, which trails market leader Google Inc.
Redmond, Wash.-based Microsoft Corp. is also giving away a first-generation Surface tablet computer to schools where community members sign up to use the ad-supported version of Bing outside of the school. Sixty parents and friends who do 30 Bing searches a day could earn their school a Surface in a little over a month.
CALIFORNIA BUS CRASH
LOS ANGELES (AP) -- The mother of a teenager who was among 10 people killed in a fiery Northern California bus crash is suing the bus company and FedEx.
Attorney A. King Aminpour says the negligence suit filed Tuesday in Los Angeles asks fpr $100 million.
Seventeen-year-old Jennifer Bonilla, of Los Angeles, was on a bus taking students to tour a university April 10 when it was struck by a FedEx truck on a freeway in Orland.
Five teens and five adults died, including both drivers.
Some witnesses say the FedEx truck was on fire before the crash. The lawsuit alleges FedEx trucks have a history of catching fire.
Memphis, Tenn.-based FedEx Corp. declined to discuss the litigation but says it's cooperating with investigators.
A call seeking comment from the bus owner, Silverado Stages, wasn't immediately returned.
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