Kickback scheme costs Ohio health alliance, hospitals $2.6 million

The Health Alliance of Greater Cincinnati, two of its member hospitals--The Fort Hamilton Hospital and The University Hospital--and University Internal Medicine Associates Inc. are paying $2.6 million to settle claims that they engaged in a kickback for referral scheme. The allegations were the result of a whistleblower lawsuit brought by a former cardiologist at Fort Hamilton, who will receive nearly $500,000 as a result of the settlement.

The Department of Justice announced the agreement last Thursday, alleging that the scheme was designed to help the 310-bed Hamilton, Ohio facility expand its heart services to include more surgical procedures that it currently is only allowed to provide within the context of a specific clinical trial.

The government says the hospital hoped to have University Internal Medicine Associates, based at the University Hospital, provide the interventional cardiology services for clinical trials at Fort Hamilton. The hospital, in return, would refer patients to the physician practice on a preferential basis. The result was that some patients were transferred to the University Hospital or were seen by University Internal Medicine Associates physicians rather than going to the hospital and seeing the doctor of their choice. 

To learn more:
- here's the DOJ's statement
- check out this Dow Jones Newswire article
- read this piece in the Business Courier of Cincinnati