Ohio system pays $21M to settle physician kickback allegations

An Ohio-based health system paid millions to resolve claims that it made improper payments to physicians for referrals over six years, according to a statement from the Justice Department. 

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Four details:

1. The federal government accused Akron (Ohio) General Health System of paying physician groups substantially more than market value in exchange for referrals from 2010 to 2016.

2. Cleveland Clinic acquired Akron General in 2015 and voluntarily disclosed the alleged improper financial relationship with physician groups.

3. Akron General agreed to pay $21.25 million to resolve alleged violations of the Anti-Kickback Statute and False Claims Act, the Justice Department saidin a July 2 statement.

4. The settlement also resolved claims brought against the health system by whistleblower Beverly Brouse, former director of internal audit at Akron General and Ethical Solutions. Ms. Brouse received an undisclosed portion of the settlement.

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