Lapsed contracts that were not re-signed could cost a Washington hospital $854,000, according to the Whidbey News Times. A recently completed independent auditor's report of Whidbey General Hospital's books over the past two years found that violations of rules regulating in-house patient referrals led to an estimated $237,000 in "benefits conferred" on physicians.
The Coupeville, Wash.-based hospital had breached requirements of the Ethics in Patient Referrals Act of 1989, and later regulations often referred to as "Stark" laws, the News Times reports. The violations were first identified in 2008, and now are part of a continuing investigation, according to hospital chief financial officer Joe Vessey.
The errors were spotted after Vessey came on board as CFO, following the retirement of former CFO Doug Bishop.
In connection to the lax oversight, the hospital board unanimously voted to fire former CEO Scott Rhine in Oct. 2008. Hospital Commissioner Roger Case told the News Times that the breaches resulted from poor administrative oversight of contract renewals between the doctors and hospital and that the violations were connected to the CEO. Case would not divulge further details.
Although the hospital proposed the settlement in June, the inspector general has yet to accept the offer. The hospital's first offer was a $230,000 settlement, which was rejected.
The News Times reports that the final settlement amount may surpass the hospital's offer or be lower, according to the audit.
To learn more:
- read the Whidbey News Times article
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