Iowa Hospital Pays $4.5M for Alleged Stark Violations Involving Employed Physicians

Covenant Medical Center, a 366-bed hospital in Waterloo, Iowa, has agreed to pay $4.5 million to resolve allegations that it overcompensated five employed physicians for referrals, according to a release from the U.S. Department of Justice.

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Covenant allegedly violated the Stark Law, which prohibits a hospital from profiting from referrals from a physician who has an improper compensation arrangement with the hospital.

The Justice Department did not identify the physicians but said they were some of the highest paid hospital-employed physicians in the entire United States.

Read the Justice Department’s release about the alleged Covenant Medical Center Stark violations.

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