WEIRTON, W.Va. — Weirton Medical Center has agreed to pay a $1.5 million settlement over claims the hospital knowingly violated the False Claims Act by submitting claims to Medicare in violation of the Physician Self-Referral Law.
Essentially, the hospital is accused of allowing impermissible financial relationships with referring physicians.
“Improper compensation arrangements between hospitals and physicians will not be tolerated,” said U.S. Attorney William Ihlenfeld for the Northern District of West Virginia. “The U.S. Attorney’s Office will be aggressive in its pursuit of those who violate the Stark Law and we strongly encourage whistleblowers to come forward.”
Hospital officials noted the financial arrangements were entered into during the tenure of the hospital’s prior management firm for the period of March 1, 2012 through May 30, 2019.
Weirton Medical Center's prior management firm was also the prior management firm for Wheeling Hospital. In September 2020, Wheeling Hospital agreed to pay the US Department of Justice $50 million to settle allegations of False Claims Act violations.
“Following the United States government’s lawsuit against Wheeling Hospital, WMC terminated the contract with its management consultant and conducted an independent internal investigation to address any related concerns," WMC President and CEO John Frankovitch said. "WMC voluntarily cooperated with the U.S. Department of Justice in its investigation, and we greatly appreciate the DOJ’s...
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