Phoenix-based Southwest Orthopedic and Spine Hospital, doing business as Oasis Hospital, United Surgical Partners International and Dignity Phoenix Surgery Centers, agreed to pay $5.6 million to resolve alleged Stark law violations, according to a Feb. 24 Justice Department news release.
What happened?
- From 2011 through 2018, Oasis allegedly made improper financial contributions to Southwest Orthopedic and Spine Hospital Physicians Group in the form of interest payments on convertible bonds issued to the physician group, which referred patients to Oasis.
- USPI disclosed the arrangements to the government following a 2019 internal compliance review and independent investigation
- The Justice Department acknowledged that Oasis and USPI took steps that entitled them to credit for cooperating, including providing a detailed written disclosure and cooperating throughout the investigation.
- The claims resolved in the settlement are allegations only and there has been no determination of liability.
