Surgeon ordered to pay $4.25M to resolve kickback & false billing claims

A Pennsylvania surgeon agreed to pay $4.25 million to resolve claims that he had received kickbacks from two hospitals operated by Health Management Associates in Lancaster.

Glenn A. Kline, DO, a general surgeon, allegedly was paid more than the average salary for general surgeons for referring patients to the hospital operator's two hospitals in Lancaster, as the operator competed with other institutions in the area.

Dr. Kline's practice, Community Surgical Associates, also allegedly received kickbacks for referring patients to the operator's hospitals, which then billed federal healthcare programs for the patients' surgeries.

“Our resolution of this matter and the significant recovery we have obtained from this physician show once again that no matter how complex the fraud scheme is, we will find it, stop it and punish it,” said First Assistant U.S. Attorney Jennifer Williams. “The alleged improper physician inducements that Dr. Kline demanded and received are a form of ‘pay to play’ business practice that could compromise professional judgment.”

The case is related to a larger investigation in which Health Management Associates has agreed to pay $260 million to the U.S. government to settle claims alleging fraudulent billing practices.

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