The organization agreed to pay $1.5 million to resolve the allegations.
Weirton Medical Center—a Weirton, West Virginia-based healthcare provider with over $600 million in net patient revenue and 167 total staffed beds—has agreed to pay $1.5 million to resolve allegations the organization violated the Stark Law, which prevents medical providers from receiving kickbacks and other financial incentives from patient referrals.
"Health care decisions should be based on patients’ medical needs, not physicians’ financial interests," Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division, said in a release. "The department will continue to investigate financial relationships that may improperly influence physician decision-making."
The settlement was reached after Weirton Medical Center voluntarily disclosed information about Stark Law violations, according to the Justice Department. The settlement resolves any liability on the part of Weirton Medical Center under the False Claims Act regarding submissions to Medicare that came from possible violations of the Stark Law.
"Improper compensation arrangements between hospitals and physicians will not be tolerated," U.S. Attorney William Ihlenfeld for the Northern District of West Virginia, said in the release. "The U.S. Attorney’s Office will be aggressive in its pursuit of those who violate the Stark Law and we strongly encourage whistleblowers to come forward."
Amanda Schiavo is the Finance Editor for HealthLeaders.