Memorial Medical Center of Las Cruces Agreed to Pay $1.1 Million for Allegedly Violating the Civil Monetary Penalties Law by Paying Remuneration for Medical Director Services Not Performed and by Submitting Claims for Medically Unnecessary Services

After it self-disclosed conduct to OIG, PHC Las Cruces, Inc. d/b/a Memorial Medical Center of Las Cruces (Las Cruces), New Mexico, agreed to pay $1,107,698 for allegedly violating the Civil Monetary Penalties Law including provisions applicable to physician self-referrals and kickbacks. OIG alleged that Las Cruces paid remuneration to a physician in the form of payments for medical director services not performed. OIG contends that such remuneration created prohibited financial relationships and Las Cruces presented claims for designated health services that resulted from prohibited referrals. OIG also alleged that Las Cruces improperly billed certain Intensive Outpatient Psychiatric program claims that were not medically necessary and/or lacked sufficient documentation.

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