Saint Joseph Health System Inc., a Southern Kentucky hospital, will pay $16.5 million to settle allegations that it submitted false claims to Medicare and Kentucky Medicaid after doctors performed unnecessary cardiac procedures on patients. The settlement also resolves allegations that the hospital violated the federal Stark Law and Anti-Kickback Statute by entering into sham agreements with two cardiologists who own Cumberland Clinic, the exclusive provider of cardiology services to Saint Joseph Hospital, as an inducement to direct patients to the hospital. One Cumberland Clinic cardiologist has pled guilty in connection with performing unnecessary procedures and been sentenced to serve 30 months in prison.

The settlement stems from a whistleblower complaint filed by three cardiologists, who will receive a total of $2.46 million. Saint Joseph Hospital also agreed to enter into a Corporate Integrity Agreement as part of the settlement.

The government further announced that it will intervene in a related False Claims Act case against Cumberland Clinic and its cardiologist co-owners .

Read the entire press release, “Kentucky Hospital Agrees to Pay Government $16.5 Million to Settle Allegations of Unnecessary Cardiac Procedures”