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Cincinnati Hospital Group To Pay $108 Million Over Anti-Kickback Allegations

May 21, 2010

The Health Alliance of Greater Cincinnati and former member Christ Hospital have agreed to pay $108 million to settle allegations that the hospital perpetrated a fraudulent pay-to-play scheme involving cardiologists. The Department of Justice, on the strength of information provided by whistleblower Dr. Harry Fry, contends that Christ Hospital hired only those cardiologists who agreed to refer a certain amount of cardiac business to the hospital, and that top referrers were further rewarded. The Federal Anti-kickback statute prohibits any arrangement under which a physician is induced to refer patients in exchange for something of value. Accordingly, the Government asserts, the claims submitted by Christ Hospital for the illicitly referred patients were false. Dr. Fry, himself a cardiologist formerly employed by Christ Hospital, will receive $23.5 million in the settlement.

To report Anti-Kickback violations or other types of Medicare fraud, contact Frohsin & Barger.

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