U.S. Dermatology Partners has agreed to pay the federal government $8.9 million to resolve its self-reported allegations that former leaders at the company agreed to increase the purchase price for dermatology practices in exchange for an agreement that the provider would refer services to USDP-affiliated businesses.
The company reported the allegations to the Department of Justice in September 2021, saying they found credible evidence that former managers had offered or agreed to pay more for 11 practices if the practicing physicians sent business to other USDP entities, a violation of the Physician Self-Referral Law (the Stark Law) and the Anti-Kickback Statute, which prevent such conflicts of interest. The settlement reflects claims for those improperly incentivized referrals.
“Decisions about where medical specimens are analyzed should be made with the best interests of patients, not providers, in mind,” said U.S. Attorney Leigha Simonton. “We applaud this company for self-reporting its potential violations and cooperating with government investigators, allowing us to reach a swift settlement.”
Per the government’s account, the self-report was unknown to federal investigators and specific about the questionable transactions, personnel involved, and potential financial impact on the government. The settlement amount took into account the cooperation of USDP.
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