Kentucky Hospital to Pay $40.9 Million to Settle False Claim Allegations

6957964_lAshland Hospital Corp. d/b/a King’s Daughters Medical Center (KDMC) will pay $40.9 million to the United States and Kentucky to resolve allegations it submitted false claims for medically unnecessary heart procedures to Medicare and Medicaid and maintained improper financial relationships with referring physicians, the Department of Justice (DOJ) announced May 28.

KDMC also agreed to enter into a five-year corporate integrity agreement with the Department of Health and Human Services Office of Inspector General. According to a DOJ press release, the government alleged KDMC billed Medicare and Medicaid for unnecessary coronary stents and diagnostic catheterizations performed by the hospital’s physicians.

The settlement also resolves Stark Law allegations that the Kentucky hospital paid referring cardiologists salaries that exceeded fair market value. Kentucky will see more than $1 million of the total settlement for its share of the recovered Medicaid funds, the release said. The settlement is not a determination of liability.

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