Here are 10 multimillion-dollar Stark law settlements Becker's has reported on in two years:
$345 million. Indianapolis-based Community Health agreed in December to pay $345 million to resolve allegations it violated Stark law. The suit alleges the health system gave appraisers false information, doubled physicians' salaries based on what they earned in private practice and ignored multiple warnings about disconnects between high compensation of physicians and productivity.
$85 million. A cardiac imaging company and its CEO agreed in April to pay more than $85 million to resolve False Claims Act allegations. Cardiac Imaging, based in Oakbrook Terrace, Ill., and its founder and CEO, Sam Kancherlapalli, were accused of paying referring cardiologists excessive fees to supervise PET scans. The lawsuit alleged this violated the Anti-Kickback Statute and Stark law.
$69 million. Saginaw, Mich.-based Covenant HealthCare and two physicians paid $69 million in March in three civil settlements for alleged improper arrangements with referring physicians. Among other claims, Covenant allegedly entered into contracts with physicians to serve as medical directors that did not satisfy any Stark law exceptions.
$42.5 million. Newark, Del.-based ChristianaCare agreed in December to pay $42.5 million to resolve claims that the hospital system provided independent neonatologists and surgeons with remuneration in exchange for referrals.
$36.5 million. In June 2023, Columbia, S.C.-based St. Francis Health system agreed to pay $36.5 million to resolve allegations it violated Stark law by making payments to orthopedic surgeons tied to volume or value of referrals.
$29.7 million. In May 2023, Detroit Medical Center agreed to pay roughly $29.7 million to settle claims from a former employed physician. The government alleged that the health system provided services of non-physician practitioners at no cost or below fair market level value to physicians to induce referrals.
$17.3 million. NewYork-Presbyterian/Brooklyn Medical Methodist Hospital agreed to pay $17.3 million in February to resolve allegations that it paid unlawful kickbacks to physicians. The hospital allegedly made payments to physicians at the hospital's chemotherapy infusion center, where physician compensation was linked to the number of referrals made for services at the center.
$8.9 million. Oliver Street Dermatology, a Texas management company that operates dermatology practices, ASCs and pathology laboratories, agreed to pay $8.9 million to settle self-reported allegations that it violated Stark law in September 2023.
$5.7 million. Massachusetts Eye and Ear in Boston agreed to pay more than $5.7 million to settle allegations that parts of its physician compensation models violated Stark law. The hospital allegedly paid an affiliated physician group a percentage of its operating margin from facility fees. The physician group then paid a portion of these funds as bonuses to employed physicians based on performed services or hours worked.
$1.8 million. A Houston physician and his diagnostic facilities, operating under United Neurology, agreed to pay $1.8 million in March to settle allegations that included Stark law violations.