HCA - Parkridge Fined $16.5 Million
HCA Inc., one of the nation’s largest private hospital chains, has agreed to pay $16.5 million to settle alleged violations of the Ethics in Patient Referrals Act (also known as the Stark law), the False Claims Act, and other federal and state laws and regulations in connection with the operation of its subsidiary, Parkridge Medical Center, Inc., in Chattanooga. In addition, Parkridge Medical Center has entered into a comprehensive five-year Corporate Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG) to ensure its continued compliance with federal health care benefit program requirements.
During 2007, HCA, through its subsidiaries Parkridge and HCA Physician Services (HCAPS), entered into a series of financial transactions with a physician group, Diagnostic Associates of Chattanooga, through which it provided financial benefits intended to induce the physician members of Diagnostic to refer patients to HCA facilities. The financial benefits included lease of office space from Diagnostic at a rental rate well in excess of fair market value to meet the mortgage obligations of the Diagnostic members and release of Diagnostic members from a separate lease obligation. These financial arrangements violated the Ethics in Patient Referrals Act and the Anti-Kickback Statute – laws designed to protect patients as well as the integrity of government-funded health care benefit programs such as Medicare, Medicaid, TRICARE, and TennCare.
As U.S. Attorney Bill Killian explained, “Physicians should make decisions regarding referrals to health care facilities based on what is in the best interest of patients without being induced by payments from hospitals competing for their business.”
Federal law prohibits hospitals from submitting claims to government-funded health care benefit programs for inpatient and outpatient hospital services referred, ordered, or arranged for by physicians who have prohibited financial arrangements with those hospitals.
"We will not allow hospitals to provide financial incentives to induce physicians to steer patients their way," said Derrick L. Jackson, Special Agent in Charge, HHS-OIG in Atlanta. "These arrangements can corrupt medical decision-making and may result in unnecessary diagnostic testing and hospital admissions."
During the period from 2007 through 2011, HCA through Parkridge, submitted or caused to be submitted claims to Medicare, TRICARE, and TennCare/Medicaid for inpatient and outpatient hospital services referred, ordered or arranged for by the Diagnostic physician members who benefitted from the prohibited financial arrangements between HCA Diagnostic. Medicare and the other health care benefit programs paid the claims for those hospital services, and this settlement addresses the financial harm to the Medicare and Medicaid trust funds, TriCare and TennCare for the moneys paid out of those funds which HCA improperly claimed and received during that time period. Under the False Claims Act, a recipient of such funds may be liable for as much as three times the amount paid by the government program plus civil penalties.
The determination of the losses suffered by the government in a False Claims Act case based on violations of the Stark law depends largely upon the number of physicians who benefitted from the financial arrangements with the hospital, the number of patients referred by those physicians to the hospital, and the amount paid by the government to the hospital for claims submitted for all those patients. The False Claims Act further provides for trebling of any losses and penalties of between $5,500-$11,000 per claim.
“Today's settlement is the third since 2005 involving violations by hospitals in Chattanooga of the Ethics in Patient Referrals and False Claims Acts and reflects the Justice Department's continued determination to enforce these laws to protect both patients and the Medicare and Medicaid trust funds,” said U.S. Attorney Killian. Mr. Killian further noted that this settlement resulted from a comprehensive investigation which began as a result of a qui tam or whistleblower complaint filed in 2008. After an administrative subpoena was served on HCA subsidiaries in July 2009, HCA produced documents to the United States and made its personnel available for interviews.
"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military health care program, continues to provide safe and superior medical care to America's Warfighters and their families." said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service- Southeast Field Office. "The successful resolution of this case demonstrates the effectiveness of joint investigations to combat health care fraud and preserve the integrity of this vital program."
Tennessee Attorney General Bob Cooper noted: "We are proud to have worked closely with our federal partners to bring this case to resolution. Combating fraud is essential to the strength and integrity of the TennCare program and is a high priority of this office."
More Business News
Last Update on February 27, 2015 18:54 GMT
WASHINGTON (AP) -- The U.S. economy slowed more sharply in the final three months of the year than previously believed, reflecting weaker business and a bigger trade deficit.
The Commerce Department said Friday that the economy as measured by the gross domestic product grew at an annual rate of 2.2 percent in the October-December quarter, less than the 2.6 percent first estimated last month. It marked a major slowdown from the third quarter, which had been the strongest growth in 11 years.
Economists remain optimistic that the slowdown will be only temporary. In fact, many forecast that growth will accelerate to above 3 percent in 2015, which would give the country the strongest economic growth in a decade.
WASHINGTON (AP) -- Harsh winter weather left U.S. consumers feeling a bit less confident this month, the University of Michigan says. But confidence levels still remain at the highest level in eight years.
The University of Michigan says its index of consumer sentiment slid to 95.4 in February from an 11-year high of 98.1 in January.
Earlier this week, the Conference Board, a business research group, said that its consumer confidence index fell a bit this month but remained at the highest levels since before the Great Recession began in late 2007.
PENDING HOME SALES
WASHINGTON (AP) -- The number of Americans signing contracts to buy homes rose at a healthy pace in January, a sign that home sales are poised to accelerate after a slow start to the year.
The National Association of Realtors says its seasonally adjusted pending home sales index increased 1.7 percent to 104.2 last month. December's figure was also revised higher to show a decline of only 1.5 percent, up from a previous drop of 3.7 percent.
The data point to a rebound in sales of existing homes in the coming months, particularly as the spring buying season gets underway. Measures of sales and construction fell last month.
Pending sales are a barometer of future purchases. A one- to two-month lag usually exists between a contract and a completed sale.
FIAT CHRYSLER-SUV RECALL
DETROIT (AP) -- Fiat Chrysler is adding more than 467,000 Dodge and Jeep SUVs worldwide to a recall from last year to fix a potential stalling problem.
The company says it's adding 2012 and 2013 Dodge Durangos and 2011 Jeep Grand Cherokees outside North America to a recall from September of last year. The Jeeps have diesel engines.
Chrysler says fuel pump relays can deform and cause the pumps to malfunction. That can cause unexpected stalling or prevent the engines from starting. The company doesn't know of any crashes or injuries from the problem.
Dealers will install a new relay circuit. Chrysler says it will let customers know when they can schedule service.
The recall from last year covered 189,000 other Grand Cherokees and Durangos in the U.S.
FRANKFURT, Germany (AP) -- German automaker Volkswagen says after-tax profits rose 21 percent for last year, to 11.1 billion euros ($12.4 billion).
The maker of Volkswagen, Audi, Skoda and SEAT brand cars said Friday that it increased its profit margins during the year and proposed to increase its dividend to shareholders.
But it offered a cautious outlook for 2015, citing a "persistently challenging market environment." It said sales would increase by at least 4 percent, "depending on economic conditions." It said economic trends in Latin America and Eastern Europe could affect its commercial vehicles and power engineering businesses.
Sales revenue rose 2.8 percent last year to 202.5 billion euros. Volkswagen said it would raise its dividend to 4.80 euros per ordinary share, up from 4.00 euros in 2013.
BERLIN (AP) -- Germany's Parliament has given its overwhelming approval to the four-month extension of Greece's financial bailout, despite unease over the new government in Athens.
Lawmakers voted 542-32 on Friday to back the bailout extension. There were 13 abstentions.
Finance Minister Wolfgang Schaeuble said ahead of the vote that "this is not about new billions for Greece, not about changing this program" and stressed that the goal is to complete Greece's existing bailout successfully.
Germany, a key creditor nation, has advocated unpopular spending cuts and insisted that aid must come with strings attached. Comments by Greek officials casting doubt on privatization deals and raising the possibility of further debt relief have irked some in Germany.
MOSCOW (AP) -- Ukrainian gas company Naftogaz says that it has paid $15 million for another month of Russian gas after fears escalated that Moscow could cut off supplies.
Interfax-Ukraine news agency quoted Naftogaz's executive, Andrei Kobolev, as saying that the company had paid for gas supplies from Russia for the month of March. Russia's Ministry of Energy Alexander Novak said Thursday morning that Russia had not yet received any payments.
Following a bruising dispute over prices and debt that raised fears of supply disruptions in Europe, Russia and Ukraine signed a deal in October requiring Kiev to pay in advance for gas shipments. President Vladimir Putin and other government officials warned earlier this week that Russia would cut off supplies to Ukraine by the end of the month barring further pre-payments.
US, Cuba restart embassy talks; breakthrough seems unlikely
WASHINGTON (AP) -- The U.S. and Cuba are holding a second round of negotiations on restoring diplomatic relations after a half-century interruption. An immediate breakthrough appears unlikely.
Although the Obama administration wants embassies reopened by April's summit of North and South American leaders, the Cubans hope first to be removed from a U.S. terrorism blacklist.
Their status on that list prevents them banking and doing other basic business in the U.S. that they would need for their embassy here.
Washington is reviewing if its designation of Cuba as a terrorist state is outdated. It hasn't made a decision.
The one-day talks started Friday morning at the State Department. Roberta Jacobson, the department's senior Latin America diplomat, led the U.S. Across the table sat Josefina Vidal, Cuba's top diplomat for the United States.
STOCKHOLM (AP) -- Switzerland has become the first country to submit a pledge to the United Nations for a new global climate deal, vowing to cut its greenhouse gas emissions in half by 2030, compared to 1990 levels.
The Swiss government said Friday that at least 30 percent of the reduction would be achieved at home and the remainder through projects abroad.
The European Union, United States, China and Norway have also announced their intended targets but haven't formally submitted them to the U.N.
The new climate deal is supposed to be adopted at the end of the year at a conference in Paris. It would be the first time that all countries agree to take action to limit greenhouse gas emissions, which scientists say are warming the planet.
EBOLA TREATMENT STUDY
BETHESDA, Md. (AP) -- The U.S. and Liberian governments are starting the first formal patient testing of an experimental Ebola virus treatment that's been used on an emergency basis.
The drug, ZMapp, contains three genetically engineered proteins designed to home on a target on the surface of the deadly virus to stop the disease's progression. ZMapp, developed by San Diego-based Mapp Pharmaceuticals Inc., is "grown" in tobacco plants engineered to make large quantities of the virus-blocking proteins.
Adults and children in both countries, infected with Ebola or with suspected infection, will be included in the study.
The National Institute of Allergy and Infectious Diseases says half the participants will receive three ZMapp injections. The other half will get standard supportive treatment, including intravenous fluids and therapy to maintain blood pressure and sufficient oxygen intake.
OIL TRAIN SAFETY
WASHINGTON (AP) -- Fiery wrecks this month of trains hauling crude oil are intensifying pressure on the Obama administration to approve tougher standards for railroads and tank cars, despite industry complaints that it could cost billions and slow freight deliveries.
On Feb. 5, the Transportation Department sent the White House draft rules that would require stronger tank cars and make other safety improvements.
Nine days later a train hauling crude oil and petroleum distillates derailed and caught fire in Ontario, Canada. Less than 48 hours later, another oil train derailed and caught fire in West Virginia.
Brigham McCown was responsible for safe transportation of hazardous materials during President George W. Bush's administration. He says that the more incidents there are, the less willing the administration will be to listen to industry.
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