Klaus Peter Rentrop, MD, a cardiologist at New York City-based Gramercy Cardiac Diagnostic Services, will pay $6.5 million to settle allegations he paid millions of dollars in kickbacks to physicians and their practices for patient referrals.
The complaint alleges that from 2010 to 2021, Dr. Rentrop and the practice entered into office space rental agreements, often in excess of fair market value, with primary care and other physicians in order to induce these physicians to refer patients to Gramercy-contracted cardiologists who saw patients at the rented office space, according to a Sept. 18 press release from the Justice Department.
These physicians ordered diagnostic tests performed at Gramercy and were allegedly paid a flat fee for each referral. Under the settlement agreement, Dr. Rentrop and the practice will pay over $4.5 million to the federal government, and nearly $2 million to the state of New York.
In addition, Dr. Rentrop has agreed to relinquish ownership of the Gramercy practice by the end of the calendar year and will pay a portion of the proceeds of any sale of the practice to the United States. He is also barred from working for any entity that bills federal healthcare programs.