Mercy Medical Center Agreed to Pay $14.8 Million for Allegedly Violating the Civil Monetary Penalties Law by Provided Improper Remuneration in the Form of Unpaid Fees and Expenses and Distributions

After it self-disclosed conduct to OIG, Mercy Hospital d/b/a Mercy Medical Center (MMC), Cedar Rapids, Iowa, agreed to pay $14,814,581 50 for allegedly violating the Civil Monetary Penalties Law. OIG alleged that MMC provided remuneration to an investment company, which held ownership interest in an ambulatory surgery center, and its physician owners in the form of: (1) fees and expenses identified in the Management Services Agreement between MMC and the ambulatory surgical center that the investment company owes but has not paid; and (b) distributions made to the investment company and its owners that, according to the ambulatory surgery center operating agreement, should not have been paid.