Indiana system to pay $345M to settle alleged False Claims Act, Stark law violations

Indianapolis-based Community Health Network agreed to pay the U.S. $345 million to resolve allegations that it violated the False Claims Act and Stark law.

Community Health Network allegedly knowingly submitting claims to Medicare for services that were referred in violation of the Stark law, according to a Dec. 19 news release from the Justice Department.

The Justice Department alleged that the compensation the health system paid to its cardiologists, cardiothoracic surgeons, vascular surgeons, neurosurgeons and breast surgeons was above fair market value. The Justice Department also alleged that Community Health Network gave bonuses to physicians that were tied to the number of their referrals, and that it submitted claims to Medicare for services that came from these unlawful referrals, according to the release.

Community Health Network will pay the U.S. $345 million and will enter into a five-year corporate integrity agreement with the HHS Office of Inspector General.

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