Hospital corporation Iasis accused of illegal referrals

The feds have unsealed a 2005 fraud case against a Franklin, Tenn.-based hospital company, that has been indicted on charges of siphoning off millions of Medicaid and Medicare dollars unfairly by paying illegal incentives to physicians. Iasis, which operates hospitals in Arizona, Florida, Louisiana, Nevada, Texas and Utah, is accused of violations of the federal Stark and anti-kickback laws.

To attract business, Iasis allegedly handed out directorships and consulting contracts to physicians, allowed medically unnecessary procedures and offered physicians space at below-market rates. In one particularly flagrant case, a physician was allegedly paid for hours spent on vacation on his boat.

To learn more about the Iasis charges:
- read this Modern Healthcare article