Dive Brief:
- Hebrew Homes Health Network, which operated at rehabilitation and skilled nursing facilities in Miami-Dade County, Florida is set to pay $17 million to resolve allegations that it paid kickbacks to physicians for the referral of Medicare patients, according to the DOJ.
- The company allegedly ran a scheme from 2006 through 2013 in which it hired numerous physicians as medical directors, but actually paid them several thousand dollars per month for referrals.
- The allegations arose from a lawsuit filed by the company's former CFO, Stephen Beaujon, under the whistleblower provisions of the False Claims Act. He will receive $4.25 million from the settlement.
Dive Insight:
The case reflects an issue recently addressed by the Office of Inspector General, which released a warning about the hiring of medical directors following other recent settlements regarding violations of the anti-kickback statute. The OIG has urged physicians to ensure that compensation from any medical directorships they enter into reflect fair market value for the services they are actually providing.
As part of the settlement for Hebrew Homes, the company has signed a five-year corporate integrity agreement with the OIG and is required to change its policies regarding the hiring of medical directors.
The settlement resolves allegations only and there has been no determination of liability, according to the DOJ.