Columbia-based MedStar Health has agreed to a $35 million settlement with the U.S. Department of Justice over allegations that it paid kickbacks to a local cardiovascular group in return for referrals.
The payment will resolve allegations that MedStar made payments to Pikesville, Maryland-based MidAtlantic Cardiovascular Associates in the kickback scheme. The scheme allegedly included lucrative cardiovascular procedures, including cardiac surgery and interventional cardiology procedures, from Jan.1, 2006 to July 31, 2011.
The settlement announced Thursday resolves a lawsuit brought by whistleblowers Dr. Stephen D. Lincoln; Dr. Peter Horneffer; and Dr. Garth McDonald, cardiac surgeons who practiced together as members of Cardiac Surgery Associates in Baltimore. The lawsuit, filed in the District of Maryland in June 2010, alleges that Union Memorial Hospital and Franklin Square Medical Center — both owned by MedStar — and others, violated the Anti-Kickback Act and the False Claims…Read the full story from the Washington Business Journal.