Crittenton Hospital Medical Center Agreed to Pay $3.2 Million for Allegedly Violating the Civil Monetary Penalties Law by Providing Renumeration to Physicians and Physician-Owned Entities that was Above Fair Market Value

After it self-disclosed conduct to OIG, Crittenton Hospital Medical Center (CHMC) and Crittenton Cancer Center (CCC), Michigan, agreed to pay $3,274,153.90 for allegedly violating the Civil Monetary Penalties Law provisions applicable to physician self-referrals and kickbacks. OIG alleged that CHMC and CCC (1) paid more than fair market value compensation for prohibited financial arrangements with a physician and entities owned by that physician and (2) had compensation arrangements with the physician and entities owned by that physician that were at times not set forth in writing and, when a writing existed, did not act in accordance with the terms set forth therein. OIG further alleged that the remuneration described above created an inappropriate financial relationship and that CHMC and CCC presented claims for designated health services that resulted from the prohibited referrals.

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