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Somerset Medical Center Settles Kickback Allegations for $435,640
Newark, N.J. – Somerset Medical Center, a regional medical center located in Somerville, N.J., has paid $435,640 to settle allegations that it violated the federal False Claims Act by making improper rental payments to a cardiology group that referred large numbers of patients to the hospital, New Jersey U.S. Attorney Paul J. Fishman announced today.
The civil settlement agreement is between the United States of America – acting through the U.S. Attorney’s Office for the District of New Jersey and on behalf of the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG) – and Somerset Medical Center.
“Making inflated rental payments to induce referrals is no better than slipping a doctor an envelope stuffed with cash,” U.S. Attorney Fishman said. “Kickback arrangements undermine the physician-patient relationship and can lead to unnecessary treatment and higher costs. There is no room in our healthcare system for hospitals that abuse federal health care programs to boost their bottom line.”
Defendant: Somerset Medical Center
Criminal Charges: Violation of the federal False Claims Act
City and State: Somerville, New Jersey
Exact Date: October 1, 2006, to September 30, 2013
Sentence or Outcome: Paid $435,640 to settle allegations
Dollar Amounts: $435,640
The whistleblower – or qui tam – provisions of the federal False Claims Act permit private individuals, known as relators, to file such whistleblower actions and share in a portion of the proceeds recovered by the federal government.
U.S. Attorney Fishman credited special agents of HHS-OIG, under the direction of Special Agent in Charge O’Donnell, for the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
The claims settled by these agreements are allegations; there have been no admissions of liability.
Somerset Medical Center has agreed to pay $435,640, which includes interest, to the United States to settle the federal civil claims. The settlement resolves allegations against Somerset in a False Claims Act suit that was brought by two former Somerset employees, a physician and an administrator.
Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Key Facts
- State: New Jersey
- Category: white collar crime
- Source: DOJ Press Release â†â€â€
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