HMA allegedly bribed doctors for Medicare referrals

A lawsuit filed by J. Michael Mastej, a former hospital executive who was fired in Oct. 2007, accuses Naples, Fla.-based Health Management Associates (NYSE: HMA) of violating federal laws by bribing doctors with gifts, cash and fancy golf trips in return for referring more Medicare patients to HMA hospitals, the Associated Press reports.

The lawsuit, which was filed in January, was recently unsealed in a Tampa federal court. A company spokesman said the suit was groundless, according to Florida Today.

Mastej, a former CEO of Physicians Regional Medical Center and Bonita Community Health Center in Collier County, alleged that HMA sent doctors to the Masters Golf Tournament in Augusta, Ga., via private jet, masked referral payments as payments for on-call services, and offered cut-rate office space owned by HMA, Florida Today reports.

Medical referrals in exchange for cash or gifts are prohibited by the Stark Law. Hospitals are also banned from submitting Medicare claims for payment based on such referrals.

HMA intends to vigorously defend itself and its subsidiary against the allegations, a company statement said.

The lawsuit says the alleged fraud by the company, which operates about 58 hospitals in 15 states, started in 2007, the AP reports.
 
To learn more:
- read the News-Press article
- read Florida Today's article
- here's the Associated Press article

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