Montana hospital to pay $3.85M for alleged anti-kickback violations

St. James Healthcare in Butte, Mont., and its parent company, the Denver-based Sisters of Charity of Leavenworth Health System, agreed to pay the federal government $3.85 million to resolve allegations that they violated the anti-kickback statute, the Stark Law and the False Claims Act by improperly providing financial benefits to physicians and physician groups that made referrals to the hospital, according to a Department of Justice announcement. The government alleged that the organizations provided improper financial incentives to physicians and physician groups that were involved in a joint venture with St. James to own and operate a medical office building on the St. James campus. These incentives included a payment to the joint venture that increased the share values for the physicians and physician groups in the joint venture and resulted in below fair market value lease rates for the physicians renting space in the medical office building. Announcement

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