Select Specialty Hospitals has agreed to pay $7.5 million to resolve allegations that it violated the False Claims Act.  Although the lawsuit involved only three of Select’s long-term, acute-care hospitals in the Columbus, Ohio area, all 110 of Select’s hospitals nationwide will submit to strict reporting and monitoring requirements under the Corporate Integrity Agreement.

The suit, brought by a whistleblower, alleged that Select entered into unlawful referral arrangements and excessive fee arrangements with area physicians.  Under these Medical Director Agreements, Select allegedly paid physicians and Directors referral fees or fees above fair market value for services provided for the referral of Medicare patients to Select hospitals.  Such agreements violate the federal Anti-Kickback Statute and the Stark Law.

The whistleblower in the case will receive 18% of the settlement, or roughly $1.35 million, for bringing Select’s alleged wrongdoing to the government’s attention.

Read the entire press release, “Corporate Operator of Columbus-Area Long-Term-Care Hospital Units Pays $7.5 Million to Resolve Claims of Illegal Kickbacks to Physicians and Agrees to Long-Term Compliance Monitoring”