Community Health Network Settles Medicare Fraud Allegations for $345M

The Indianapolis-based health network resolves charges of overpaying doctors for patient referrals, violating the Stark Law, without admitting wrongdoing.

• Community Health Network, an Indianapolis-based health network, has agreed to pay the U.S. government $345 million to settle allegations of Medicare fraud.
• The settlement resolves charges that the network overpaid doctors who referred patients to its facilities, violating the Stark Law, which prohibits hospitals from billing for certain services referred by physicians with whom the hospital has a financial relationship.
• The U.S. Department of Justice alleged that Community Health Network recruited hundreds of doctors beginning in 2008 and paid them salaries significantly higher than what they received in their private practices.
• The settlement includes no finding of wrongdoing by Community Health Network, which referred to the allegations as 'technical violations'.
• Following the settlement, the Department of Health and Human Services Office of Inspector General will enter into a five-year corporate integrity agreement with Community Health Network.

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