COLUMBIA, S.C. (WCIV) — St. Francis Physician Services, Inc., St. Francis Hospital, and Bon Secours St. Francis Health System, Inc., (collectively, "St. Francis"), the owner and operator of the St. Francis healthcare system has agreed to pay $36.5 million to resolve allegations that it violated the False Claims Act, the Federal Stark Law, and the Federal Anti-Kickback Statute (AKS) by making payments to orthopedic surgeons that were tied to the volume or value of referrals.
According to a June 15 press release from the United States Department of Justice (DOJ), the settlement resolves allegations that St. Francis caused the submission of false claims to Medicare and to TRICARE as a result of an unlawful contractual payment structure between St. Francis and Piedmont Orthopedic Associates (POA), whereby POA's compensation was tied to the volume or value of the practice's referrals to St. Francis. Specifically, it is alleged that St. Francis's bonus payments to POA physicians violated both the Stark Law and the AKS.
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"Medical providers should base health care decisions on what is best for the patient and not on financial incentives and related schemes," said Adair F. Boroughs, US Attorney for the District of South Carolina, in a statement. "We are grateful the relator brought these allegations forward. Relators are critical to identifying fraud and protecting the integrity of our Medicare...
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