Fresno’s largest healthcare system and an affiliated health care technology company must pay the federal government $31.5 million to resolve allegations that they provided expensive wine, liquor, cigars and meals to physicians in exchange for patient referrals.

The settlement announced Wednesday by the U.S. Attorney’s Office for the Eastern District of California resolves allegations that Community Health System and Physician Network Advantage Inc. violated the False Claims Act.

“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 Michele Beckwith. “This settlement demonstrates this Office’s commitment to ensuring that patients’ best interests remain paramount.”

Community Health System is the parent organization that owns and operates Community Regional Medical Center and Clovis Community Medical Center.

PNA is a health care technology business formed and funded by CHS to support Fresno-area physicians’ adoption of the electronic health records platform used by Community, according to federal prosecutors.

The settlement also resolves allegations that CHS and PNA provided financial subsidies for electronic health records technology and equipment used by some physicians in their private offices in exchange for the referral of governmental health care program patients to CHS.

Additionally, it resolves allegations that CHS paid bonuses to certain physicians to reward...

Read Full Story: https://news.google.com/rss/articles/CBMiakFVX3lxTFAzdjZrY2tQcnFpbVhQVEZ2VDA0...