Texas health group pays $14.2M for alleged physician self-referral violations

Medical devices

A Texas health care organization agreed to pay $14.2 million to settle allegations it filed false claims related to violations of the “Stark” self-referral law, according to the Department of Justice (DOJ).

The Physician Self-referral Law, nicknamed after its author, former lawmaker Fortney “Pete” Stark (D-Calif.), prohibits doctors from referring Medicare patients to health care centers or services in which they have a financial interest.

Physicians working at Horizon Medical Center’s long term care facility allegedly violated the law by referring Medicare patients to any of three surgical outpatient centers, which, like the long-term care facility, were owned by Corinth Investor Holdings LLC.

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