Posted: May 1, 2013 1:22 PM by Angela Douglas - MTN News
BILLINGS - Two Montana hospitals have agreed to pay nearly $4 million after improperly providing incentive pay to physicians that made referrals to the hospitals.
The U.S. Justice Department reports the settlement resolves allegations that St. Vincent Healthcare in Billings and Holy Rosary Healthcare in Miles City paid several physicians incentive compensation that took into account the value or volume of their referrals.
St. Vincent Healthcare and Holy Rosary Healthcare are part of the Sisters of Charity of Leavenworth Health System.
SCL Health System CEO Jason Barker released a statement on Wednesday, stating that in 2009, an internal compliance review was conducted and they found some discrepancies in a few of their physician contracting arrangements. The issues were disclosed by the hospitals to the government.
"We are committed to compliance with all healthcare laws and dedicated to avoiding future mistakes related to physician contracting," Barker said. "We have enhanced our focus on compliance efforts by allocating more resources towards our compliance goals and implementing tighter contracting processes."
The DOJ reports the claims settled by this agreement are allegations only, and there has been no determination of liability.