Lancaster Physician Group Caught in Kickback Scheme
PHILADELPHIA – In a shocking revelation, the United States Attorney’s Office for the Eastern District of Pennsylvania has announced a settlement with Physician’s Alliance Ltd. (PAL), a Lancaster-based physician group, for allegedly receiving illegal remuneration in exchange for patient referrals to hospitals owned by the now-defunct Health Management Associates (HMA).
According to the allegations, PAL, headquartered in Lancaster, Pennsylvania, and three of its executives, Lee Meyers, Michael Warren, M.D. and Wallace Longton, M.D., accepted illegal remuneration from HMA to refer patients to two HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center, between 2009 and 2012.
The settlement, worth $4 million, includes a percentage of proceeds from the sale of PAL’s interest in a joint venture with HMA. This development serves as a warning to all providers who allow financial incentives to displace their medical judgment.
“These physicians and executives prioritized their own financial interests over the needs of their patients,” said United States Attorney Louis D. Lappen. “Such conduct compromises patient care and undermines the integrity of our nation’s federal health care programs.”
Physician’s Alliance Ltd., Physicians Alliance, Kickback Scheme, Pennsylvania, 2012
The case is captioned United States ex rel. Miller & Metts v. HMA, et al, Case No. 14-00339 (D.D.C.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Physician’s Alliance Ltd. (PAL) and its executives will pay $4 million plus a percentage of proceeds from the sale of PAL’s interest in a joint venture with HMA. George E. Miller and Michael J. Metts, former HMA hospital executives, filed suit in the Eastern District of Pennsylvania alleging the scheme between PAL and HMA.
“The Hippocratic oath enjoins physicians to do no harm, not maximize profits by pocketing illegal referral bribes,” said Nicholas DiGiulio, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.
The investigations were conducted by the Office of Inspector General of the United States Department of Health and Human Services and the Federal Bureau of Investigation.
Key Facts
- State: Pennsylvania
- Category: White Collor Crime
- Source: DOJ Press Release â†â€â€
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