Where Stark law violations occurred in 2023

Here are four Stark law violations Becker’s has reported on in 2023 and where they occurred:

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Illinois

  • A cardiac imaging company and its CEO agreed to pay more than $85 million to resolve False Claims Act allegations. Cardiac Imaging, based in Oakbrook Terrace, Ill., and its founder and CEO, Sam Kancherlapalli, were accused of paying referring cardiologists excessive fees to supervise PET scans. The lawsuit alleged this violated the Anti-Kickback Statute and Stark law.

Massachusetts

  • Massachusetts Eye and Ear in Boston agreed to pay over $5.7 million to settle allegations that it violated the False Claims Act. Seven of the facility’s physician compensation plans allegedly violate the Stark law.

Michigan

  • Saginaw, Mich.-based Covenant HealthCare and two physicians paid $69 million in three civil settlements for allegedly violating the False Claims Act. The healthcare system and physicians allegedly had improper financial relationships with eight physicians and a physician-owned investment group. These contracts were not exempt from any anti-kickback laws or the Stark law, so referrals to Covenant made by these physicians allegedly violated the False Claims Act.

Texas

  • Oliver Street Dermatology, a Texas management company that operates dermatology practices, ASCs and pathology laboratories, agreed to pay $8.9 million to settle self-reported allegations that it violated Stark law.

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