May 18, 2025 – Community Health System and its affiliate Physician Network Advantage Inc. have agreed to pay $31.5 million to the United States to resolve allegations that they violated the False Claims Act based on financial benefits provided

to referring physicians, Acting U.S. Attorney Michele Beckwith announced last Wednesday. Community Health System operates in Fresno County and includes hospitals Community Regional Medical Center and Clovis Community Medical Center.

Image by myshoun from Pixabay

“We cannot allow medical decisions to be distorted by kickback schemes or efforts to buy physicians’ loyalty with lucrative side perks,” said Acting U.S. Attorney Beckwith. “This settlement demonstrates this Office’s commitment to ensuring that patients’ best interests remain paramount.”

The civil settlement announced on Wednesday, May 14, 2025, resolves allegations that Community Health System and Physician Network Advantage Inc. (PNA) provided several types of extravagant benefits to induce physicians in the Fresno area to refer their patients to Community facilities for medical services, in violation of the False Claims Act. PNA is a health care technology business formed and funded by Community to support Fresno-area physicians’ adoption of the electronic health records platform used by Community. The United States contends that PNA also played a key role in securing business for Community by unlawful means. In a custom-built lounge located on premises at PNA’s offices,...

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