NY-Presbyterian Kicked Back $616K in Cancer Patient Scheme

NEW YORK – New York-Presbyterian Hudson Valley Hospital (HVH) is shelling out over $616,000 after a damning investigation revealed a calculated scheme to illegally incentivize cancer patient referrals. Attorney General Letitia James announced the settlement today, exposing a years-long practice of kickbacks to a Westchester County oncology practice.

From January 2011 through December 2019, HVH and its predecessor, Hudson Valley Hospital Center, allegedly funneled over $4 million to the oncology practice. The payoff? A steady stream of approximately 114 cancer patients directed to HVH for treatment. The Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU), working alongside the United States Attorney’s Office for the Southern District of New York (SDNY), uncovered that the payments were tied to agreements for work either never completed, poorly executed, or lacking any documented time records – a clear attempt to disguise illegal inducements.

“New Yorkers should be able to trust that their doctors are making decisions based on their best interests, not financial incentives,” Attorney General James stated bluntly. “HVH’s illegal kickback scheme undermined cancer patients’ critical relationships with their health care providers. I will continue to go after illegal financial schemes that corrupt our health care system and prevent patients from getting the care they deserve.” The scheme resulted in false claims submitted to New York’s Medicaid program, violating the New York State False Claims Act.

The settlement mandates that HVH pay $616,676.14 in damages, with over $367,000 headed directly to New York’s Medicaid program. The remaining funds will be returned to the federal government. A whistleblower – a former HVH employee – initiated the case and will receive a portion of the settlement for coming forward under both the federal and New York False Claims Acts, which incentivize individuals to report fraud on behalf of the government.

This wasn’t a solo operation. The investigation was a coordinated effort between OAG and SDNY. Deputy Regional Chief Auditor Matthew Tandle, Chief Auditor Dejan Budimir, and former Special Assistant Attorney General Jared Goldman spearheaded the investigation within the Civil Enforcement Division, supervised by Deputy Chief Diana Elkind. The division is led by Chief Alee Scott. MFCU, headed by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney, played a crucial role, operating under the leadership of Chief Deputy Attorney General José Maldonado and First Deputy Attorney General Jennifer Levy.

Got a tip about Medicaid fraud? The MFCU wants to hear from you. File a confidential complaint online or call (212) 417-5397. If it’s an emergency, dial 911. The New York MFCU’s total funding for federal fiscal year 2026 is $70,793,651, with 75 percent of that total dedicated to fighting fraud and protecting vulnerable nursing home residents.