Sanford Health Pays $20M to Settle False Claims Act Allegation

Physicians should be prohibited from having a financial interest in companies that manufacture or distribute medical devices and implants when such physicians benefit financially from the use of these devices in their practices. This rule is pretty basic but the concept seems to have alluded the executives runningStanford Health in Sioux Falls, S.D. The health system has been socked with a $20M penalty by the Justice Department for false claims (see:Sanford Health to pay $20M to settle False Claims Act allegations; Physicians accuse Sanford Health of defrauding Medicare: 5 things to know). Below is an excerpt from the first of these articles:Sanford Health will pay the federal government $20.25 million to settle allegations that one of its neurosurgeons received kickbacks for using implantable devices distributed by his physician-owned distributorship....Colleagues of [neurosurgeon] Dr. Wilson Asfora allegedly warned the Sioux Falls, S.D.-based not-for-profit health system that he was performing medically unnecessary procedures involving the devices in which he had a substantial financial interest.Despite these repeated warnings, the DOJ alleged, Sanford continued to employ him, allowed him to profit from the devices he used in surgeries and continued to submit fraudulent claims. ....Sanford said in a statement that it denies any liability or wrongdoing, and that it chose to settle because the amount is far less than the unnecessary costs and operational disruption that...
Source: Lab Soft News - Category: Laboratory Medicine Authors: Tags: Cost of Healthcare Hospital Financial Medical Ethics Medicolegal Issues Quality of Care Source Type: blogs