ALL >> Health >> View Article
Hospitals, Physicians Can Take Some ‘stark' Lessons From Covenant Case
Recently, Covenant Medical Center in Waterloo, Iowa agreed to fork over a huge $4.5 million to settle a federal False Claims Act lawsuit involving alleged Stark Law violations. The case in point teaches some lessons to hospitals and physicians trying to survive a growing government crackdown on fraud and abuse.
According to the US government, Covenant submitted false claims to Medicare because it had overpaid five employed physicians who referred patients to the hospital for services - a verboten practice under the physician self-referral Stark law. The Department of Justice (DOJ), in a news release announcing the settlement agreement, noted that the Covenant physicians featured among the best paid hospital-employed physicians not just in Iowa, but throughout the country.
As far as the fates of the physicians are concerned, the DOJ does not anticipate any sanctions ...
... being brought against them. But that doesn't mean that the government couldn't impose a civil or criminal penalty against both the hospital in Stark cases.
According to legal experts, the Covenant case sounds a warning bell for two key reasons - First, the government targeted employment relationships, which it typically hasn't done under Stark or as kickbacks. Second, a dissatisfied competitor of Covenant reportedly enthused the legal trouble for the not-for-profit medical center. Attorney William Mathias says that based on the background he's heard, the competitor saw that Covenant's IRS form showed Covenant was giving its physicians a much better deal than the competitor was giving its physicians.
He also predicts that there will be more and more of this type of activity on the part of competing providers.
We provide the latest developments of Medicare claims in health care and offers advanced Learning Opportunities about
Stark law for healthcare executives, hospitals and physicians.
Add Comment
Health Articles
1. क्या पेनिस का साइज़ सच में मायने रखता है? जानिए पूरी सच्चाई?Author: Vivan Hospital
2. Minimally Invasive Spine Surgery In India For Faster Recovery
Author: Andy
3. Golden Ratio Biosciences | Best Health Supplements And Nutraceuticals
Author: GRBS
4. What Are The Attributes Of A Good Weight Loss Clinic In Melbourne?
Author: Alexis Pelloe
5. Partial Vs. Total Knee Replacement – Which Is Right For You?
Author: Dr. Amol Kadu
6. Best Physiotherapist In Hyderabad For Back Pain, Sports Injury & Rehab
Author: Prabhat Shankar
7. How Long Do Dental Crowns Last? | Tips & Lifespan Guide
Author: Dr Amit
8. When Is The Right Time For Braces | Dentist For Chickens
Author: Dr Amit
9. Teeth Glow-up: Because Filters Aren’t Enough – Enhance Your Smile With Custom Veneers
Author: Dr Amit
10. The Silent Revenue Leak In Menopause Hormone Therapy Billing For Ob-gyn Practices In 2026
Author: Meenu
11. Why Choose Local Appliance Repair In New York?
Author: The Appliance Doctor
12. Neovela (selamectin) Flea And Worming For Cats 2.6 - 7.5 Kg Blue
Author: VetSupply
13. Aristopet Heartworm Tablets
Author: VetSupply
14. Restore Your Smile And Confidence With Cosmetic Dentistry In Cranbourne
Author: Dr Rekha
15. Your Teeth Called… They Want Backup – Dental Implats – Eve Dental Centre
Author: Dr Rekha






