Penn Highlands Healthcare to pay $735K to settle Stark Law violation allegations

Pittsburgh-based Penn Highlands Healthcare and several of its hospitals agreed to pay $735,000 to resolve False Claims Act and Stark Law infringement allegations.

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Penn Highlands DuBois allegedly violated the Stark Law from July 1, 2009 through June 30, 2012 by paying improper compensation to medical providers, according to a May 28 news release from the Justice Department. 

Gary Ott, MD, and another physician at Dr. Ott’s practice were paid $420,000 under a consulting agreement for employment services allegedly performed before the agreement went into effect, during which time neither physician was employed by Penn Highlands DuBois. 

The settlement originates from a whistleblower complaint filed in October 2016 by three medical providers who were previously employed by Penn Highlands, the release said.

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