An internal investigation by Detroit Medical Center before its sale to Vanguard Health Systems uncovered potentially improper relationships between the health system and more than 250 physicians, according to a Crain's Detroit Business report.
Just before it closed its deal with Vanguard at the end of December, DMC announced it would pay $30 million to the federal government to settle the matter.
According an assistant U.S. attorney cited in the report, the DMC sale may have failed if the health system did not settle the case with the government quickly, in which case the system could have closed.
Potential relationship violations settled by DMC occurred between 2004 and 2010 and included leases with physicians that were not at fair market value, free advertising and tickets to events and seminars. DMC also discovered instances between 2007 to 2010 when governmental payors were billed for services that were not properly documented.
Read the Crain's Detroit Business report on Detroit Medical Center.
Read previous coverage on Detroit Medical Center:
- Vanguard Completes Acquisition of Detroit Medical Center
- Detroit Medical Center Pays $30M for Improper Relationships With Physicians
- DMC Pays Off Outstanding Debt, Reducing Vanguard's Cash Purchase Price
Just before it closed its deal with Vanguard at the end of December, DMC announced it would pay $30 million to the federal government to settle the matter.
According an assistant U.S. attorney cited in the report, the DMC sale may have failed if the health system did not settle the case with the government quickly, in which case the system could have closed.
Potential relationship violations settled by DMC occurred between 2004 and 2010 and included leases with physicians that were not at fair market value, free advertising and tickets to events and seminars. DMC also discovered instances between 2007 to 2010 when governmental payors were billed for services that were not properly documented.
Read the Crain's Detroit Business report on Detroit Medical Center.
Read previous coverage on Detroit Medical Center:
- Vanguard Completes Acquisition of Detroit Medical Center
- Detroit Medical Center Pays $30M for Improper Relationships With Physicians
- DMC Pays Off Outstanding Debt, Reducing Vanguard's Cash Purchase Price