After the DOJ announced its intervention in the case last week, more information has become available on the case against Halifax Hospital.  According to the allegations, Halifax paid several neurologists and oncologists on the basis of referrals made for other services at Halifax Hospital.  The payment arrangements were even included in the oncologists’ contracts, according to evidence filed in federal court.  Some of the services which the doctors provided or referred patients to are alleged to have been medically unnecessary.  Additionally, at least one of the doctors allegedly billed for services which others had provided on his behalf.

Federal law prohibits a hospital from paying its doctor employees for anything other than services they personally provide.  If Halifax violated these laws, the hospital could be on the hook for all Medicare claims involving these doctors–claims worth hundreds of millions of dollars.