A settlement has been reached to resolve False Claims Act allegations against MediSys Health Network Inc.
The allegations arose from a lawsuit that claimed MediSys Health Network Inc., which owns and operates Jamaica Hospital Medical Center and Flushing Hospital and Medical Center, two hospitals in Queens, New York, violated the False Claims Act by engaging in improper financial relationships with referring physicians.
According to the government, the defendants allegedly submitted false claims to the Medicare program for services rendered to patients referred by physicians with whom the defendants had improper financial relationships. These relationships took the form of compensation and office lease arrangements that did not comply with the requirements of the Stark Law, which restricts the financial relationships that hospitals may have with doctors who refer patients to them.
“Health care providers who enter into improper financial relations with referring physicians compromise the referral process and encourage over-utilization of services, to the potential detriment of both patients and taxpayers,” said Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York. “We will hold health care providers accountable for their violations of federal law.”
The lawsuit was filed by Dr. Satish Deshpande, who will receive $600,000 as his share of the recovery.
