PITTSBURGH — Penn Highlands Healthcare will pay $725,000 to settle a lawsuit alleging False Claims Act infringement.
The lawsuit claimed the infringement came through the submission of claims to Medicare and Medicaid resulting from violations of the Physician Self-Referral Law (Stark Law), the Department of Justice said.
The Stark Law prohibits a medical provider from billing Medicare or Medicaid for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions.
In the lawsuit, the United States alleged that from July 1, 2009 through June 30, 2012, Penn Highlands DuBois violated the Stark Law by paying improper compensation to a referring physician and to a physician employed by Women’s Care of Pennsylvania.
The case was brought about by a whistleblower complaint by three medical providers that was filed in October 2016, the Department of Justice said. The medical providers were formerly employed by Penn Highlands.
In a statement sent to Channel 11, Penn Highlands Healthcare denies the allegations but says it’s pleased to resolve the investigation. The full statement reads:
“While Penn Highlands Healthcare vigorously denies the allegations set forth in the amended complaint, PHH is pleased to resolve this six-year long investigation on narrow terms without admitting liability. The settlement relates to one particular term in a contract entered into more than fifteen years ago. We appreciate the government’s hard work on these complex issues, and we were pleased to cooperate fully in every respect of their investigation. We look forward to closing this matter and continuing to provide the highest quality of care for Pennsylvanians. This complaint and the subsequent investigation did not affect patient care.”
Download the FREE WPXI News app for breaking news alerts.
Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW