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, according to a March 12 news release from the Justice Department.
The rules of Medicare and Medicaid prohibit physicians from receiving any earnings in exchange for patient referrals for services.
The settlement resolves claims that physicians at the center failed to properly supervise chemotherapy services.
The hospital voluntarily self-disclosed the situation. In the settlement, $16.4 million is being paid to the federal government and $890,000 will be paid to the state of New York, the release said.
