WASHINGTON, Dec. 30 (UPI) -- A Detroit medical center Thursday agreed to pay $30 million to settle federal charges stemming from a kickback scheme, the U.S. Justice Department said.
Federal prosecutors charged the Detroit Medical Center, which owns and operates facilities in Detroit, with engaging in inappropriate relations with referring doctors, mostly concerning independent contractor relationships and office lease agreements that were not up to fair market value or not formalized in writing.
"Improper financial relationships between healthcare providers and their referral sources can corrupt a physician's judgment about the patient's true healthcare needs. In addition to yielding a substantial recovery for taxpayers, this settlement should deter similar conduct in the future and help make healthcare more affordable for patients," said Tony West, assistant attorney general for the Justice Department's Civil Division.
The medical center is in the process of selling its facilities to Vanguard Health Systems Inc., of Nashville. The alleged violations pertained to the medical center's transaction with Vanguard. The hospital, which also signed the settlement, discovered and disclosed the violations, Justice said.
"We applaud the hospital leadership's decision to come forward voluntarily to disclose these issues to the government," U.S. Attorney Barbara McQuade said. UPI
