Doc-owned Hospitals: DOJ Settlement Shows Problems with Corporate Hospital Chains

Posted by Chris Pace on November 4, 2009 under News | Be the First to Comment

Physician-owned hospitals today launched a media counteroffensive with news that the Department of Justice reached a $27.5 million settlement with for-profit Universal Health Services and its subsidiaries for violations of the anti-kickback and false claims laws at the corporation’s hospitals in McAllen, TX.

In a sharply worded press release, the trade group Physicians Hospitals of America said the DOJ settlement “uncovered the real problem—large, corporate hospitals who now owe millions for their illegal contracting schemes.”

“Our opposition has attempted to pass the blame to physician-owned hospitals for cost concerns brought to light by a June 2009 article published in The New Yorker,” said PHA Executive Director Molly Sandvig. “As the DOJ settlement demonstrates, that is simply not the case. The problem has never been physician ownership. The real problem lies with big corporate hospital chains.”

Read more http://www.healthleadersmedia.com/content/241601/topic/WS_HLM2_PHY/Docowned-Hospitals-DOJ-Settlement-Shows-Problems-with-Corporate-Hospital-Chains.html

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