Agreement resolves allegations that Massachusetts Eye and Ear compensated 44 physicians in violation of the Stark Law
BOSTON – Massachusetts Eye and Ear Infirmary, Massachusetts Eye and Ear Associates, Inc., and the Foundation of the Massachusetts Eye and Ear Infirmary, Inc. (collectively “Massachusetts Eye and Ear”) have agreed to pay over $5.7 million to resolve allegations that seven of their physician compensation plans, involving 44 doctors, violated federal law.
The government alleges that Massachusetts Eye and Ear compensated 44 physicians in a manner that violated the Physician Self-Referral Law (sometimes referred to as the Stark Law). Mass General Brigham, which has owned and operated Massachusetts Eye and Ear since April 2018, disclosed this issue to the government in connection with the government’s investigation into related allegations. The Stark Law prohibits physicians from referring patients to receive “designated health services” payable by Medicare from entities, like hospitals, with which the physician has a financial relationship, unless the arrangement falls into the exceptions provided for by law. It also prohibits the entity from billing Medicare for those services. The law is intended to ensure that physicians’ medical judgments are not compromised by improper financial inducements.
“Stark Act violations drive up the overall costs of the health care system due to fraud and abuse,” said Acting United States Attorney Joshua Levy. “We will continue to...
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