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TOPICS:

Oroville HospitalKickbackSettlementFalse Claims ActAnti-Kickback StatuteMedicareMedi-CalCompliance

OROVILLE, Calif. — Oroville Hospital has agreed to pay more than $10 million to the state and federal government, as well as two private plaintiffs, to resolve allegations the hospital violated the False Claims Act and the Anti-Kickback Statute, according to the Department of Justice.

The hospital on Olive Highway in Oroville allegedly paid kickbacks to physicians for the number of patients they admitted to the hospital, as well as knowingly submitted false claims to Medicare and Medi-Cal for systemic inflammatory response syndrome (SIRS), which resulted in excessive reimbursement to the hospital, according to the U.S. Attorney's Office.

The settlement additionally resolves allegations that Oroville Hospital admitted patients as inpatients when it knew inpatient care was not medically necessary.

“Physicians should make decisions based the best interests of their patients, not their own personal financial interests,” said U.S. Attorney Phillip Talbert. “Hospitals engaging in kickback schemes betray the trust placed in them by their communities and distort care decisions that should be untainted by illegal kickbacks. This settlement demonstrates my office’s commitment to preserving the integrity of public healthcare programs and ensuring that the well-being of patients remains paramount.”

From the $10.25 million settlement, Oroville Hospital will have to pay more...

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