Justice Dept. files complaint against Erlanger

They accuse Hospital company of improper relationships and billing in Murphy, NC

UPDATE:

Erlanger statement on the Justice Dept. complaint:

“Erlanger paid physicians based on amounts that outside experts advised was fair market value.  Erlanger did not pay for referrals.  A complete picture of the facts will demonstrate that the allegations lack merit and tell a very different story than what the government now claims.  Erlanger will vigorously defend this lawsuit.”

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WASHINGTON D.C. (WDEF) – The U.S. Department of Justice has filed a complaint against Erlanger Health System pertaining to their operations in North Carolina.

They accuse the healthcare company of violating the Stark Law and submitting false claims to the Medicare program.

The accusations center on Murphy Medical Center, which the Erlanger system has bought out.

The complaint accuses Erlanger of improper relations with their doctors in violation of the Stark Law.

Specifically, they paid the doctors above their market value to get referrals from them.

And they submitted claims to Medicare knowing that the claims for the referred services were not eligible for payment.

“Improper financial relationships between hospitals and physicians threaten the integrity of clinical decision-making and can influence the type and amount of health care that is provided to patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that physicians’ treatment decisions are based on the needs of their patients and not their own financial interests.”