St. Joseph Medical Center Reaches Final Agreement with the Federal Government, Signs Corporate Integrity Agreement

(Nov. 9, 2010) Towson, Md. - St. Joseph Medical Center (SJMC) has signed a settlement agreement with the federal government, which resolves an ongoing civil investigation involving its past financial relationship with MidAtlantic Cardiovascular Associates ("MACVA") and certain stent procedures performed by Dr. Mark Midei while employed by SJMC. The medical center reached the agreement without admitting liability in order to avoid the expense and uncertainty of litigation and to allow the medical center to move forward.

Additionally, SJMC signed a five-year Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG) of the U.S. Department of Health and Human Services. The CIA helps ensure that all conduct and activity going forward is in compliance with all regulations governing health care. Through a loan from Catholic Health Initiatives, SJMC has the necessary resources to pay the $22 million fine.

On July 21, 2009, SJMC announced that it had reached an agreement in principle with the federal government to settle potential claims arising out of its relationship with MACVA and that it also expected to sign a CIA.

In July 2009, SJMC began instituting many CIA requirements including:

  • Appointment of a corporate responsibility officer, who will oversee the implementation of the CIA and the continued development of written policies and procedures for St. Joseph Medical Center's compliance program;
  • Enhanced physician peer review;
  • Revised physician contract review and approval process;
  • Education related to the Code of Conduct;
  • Training and education for physicians and staff; and,
  • Strengthening the quality management program.

"Today, and as we move forward, we stand true to our mission to serve the community with integrity, compassion, and excellence," said Jeffrey K. Norman, SJMC president and CEO. "From the start of the U.S. Attorney's inquiry, St. Joseph Medical Center made it clear that it would cooperate fully with the government. Medical Center leadership operated from the belief that a cooperative and transparent approach guided by its faith-based system best served the interests of its patients and community and reflects our mission and values."