A New York medical center paid almost $19 million to settle a kickback case involving a cardiology practice. The charges alleged that the medical center improperly paid the practice for referrals and improperly submitted cost reports for cardiology fellows’ services.
The Department of Justice (DoJ) pursued the whistleblower case against Westchester Medical Center in Valhalla, which it claimed had a financial relationship with Cardiology Consultants of Westchester. The cardiology group originally had operated on the Valhalla campus, but in 2001 it entered into a management agreement with an affiliate of the center to establish a practice in Kingston.
According to the charges, the medical center advanced money to the cardiology group to develop the Kingston practice. In 2003, it terminated the management agreement; negotiated repayment of the outstanding advances at lower terms over an extended timeframe; and entered into a retroactive consulting agreement that was later amended.
The original article can be found at www.cardiovascularbusiness.com