NY-Presbyterian Hudson Valley Hospital Hit with $616K Fine for Illegal Kickback Scheme

New York Attorney General Letitia James has secured over $616,000 from New York-Presbyterian Hudson Valley Hospital (HVH) for violating the law by engaging in an illegal kickback scheme. The hospital allegedly paid millions to a Westchester County oncology practice to refer cancer patients to HVH.

The joint investigation between the Office of the Attorney General’s Medicaid Fraud Control Unit and the United States Attorney’s Office revealed that from January 2011 through December 2019, HVH paid over four million dollars in fees to induce the oncology practice to refer patients for oncology services. The payments were made under three agreements, some of which involved work not performed or performed improperly.

Under the settlement with the Office of the Attorney General and the United States Attorney’s Office, HVH will pay $616,676.14 in damages to New York’s Medicaid program. A portion of the settlement will also go directly to the federal government.

The case was initiated by a former employee who filed a whistleblower lawsuit under the federal and New York False Claims Acts. Attorney General James emphasized the importance of trust between patients and healthcare providers, stating that HVH’s scheme undermined this critical relationship.

Attorney General James thanked the United States Attorney’s Office for their partnership in this investigation, which was conducted by the Medicaid Fraud Control Unit. The Civil Enforcement Division is led by Chief Alee Scott, with MFCU directed by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney at the helm.