Hospital Pays $7.25 Million over Alleged Improper Financial Arrangements with Physician Practice
- January 12, 2024
Methodist Le Bonheur Healthcare and Methodist Healthcare-Memphis Hospitals paid $7,250,000 to resolve allegations that they caused the submission of false claims to Medicare that resulted from improper financial arrangements between Methodist and the West Clinic, PLLC, U.S. Attorney for the Middle District of Tennessee Henry C. Leventis announced January 4.
The government alleged that from December 2011 until February 2019, Methodist used a multi-agreement affiliation with the West Clinic and the University of Tennessee Health Science Center as a vehicle to pay kickbacks to the West Clinic in part to induce the clinic's referrals of Medicare beneficiaries to Methodist.
The settlement resolves allegations only, and there has been no determination of liability.