Kaleida Health and Olean General Hospital Agreed to Pay $2.7 Million for Allegedly Violating the Civil Monetary Penalties Law by Paying Remuneration to Employees and Family Members Who Were Federal Health Care Program Beneficiaries

After they self-disclosed conduct to OIG, Kaleida Health (Kaleida) and Olean General Hospital (OGH), New York, agreed to pay $2,702,944.61 for allegedly violating the Civil Monetary Penalties Law. OIG alleged that Kaleida paid remuneration to certain Kaleida employees and their family members who were Federal health care program beneficiaries in the form of: (1) discounts on inpatient, observation, and outpatient hospital services; (2) discounts on home care services and long-term care services; (3) complimentary local telephone service, television, valet parking, and cafeteria privileges; (4) upgrades from semi-private to private rooms with no additional charge; (5) reduced cost-sharing amounts for prescriptions filled at Kaleida pharmacies; (6) reductions in deductibles for subacute rehabilitation services; and (7) reductions or waivers of cost-sharing amounts for other services, including smoking cessation classes, in relation to services provided at 14 affiliates of Kaleida. OIG also alleged that OGH offered and provided waivers or reductions of cost-sharing amounts to certain OGH employees and their family members who were Federal health care program beneficiaries on: (1) inpatient services; (2) outpatient ancillary services; (3) same-day services; (4) rehabilitation services; (5) dialysis; (6) chemotherapy; and (7) radiation therapy.

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