Palm Drive Hospital Agreed to Pay $10,000 for Allegedly Violating the Civil Monetary Penalties Law by Submitting Claims with the Wrong Rendering Physicians and Failing to Meet Provider-Based Requirements

After it self-disclosed conduct to OIG, Palm Drive Hospital (PDH), California, agreed to pay $10,000 for allegedly violating the Civil Monetary Penalties Law (CMPL) and provisions of the CMPL applicable to physician self-referrals and kickbacks. OIG alleged that PDH submitted claims for physician services provided by three providers to Medicare beneficiaries using the provider identification number of a physician who neither furnished the services nor personally supervised the services rendered. OIG further alleged that PDH knowingly charged facility fees and submitted claims for services provided at Palm Drive Medical Clinic (Clinic) when the Clinic failed to fully meet Medicare's regulations for Provider-Based Status, which resulted in improper billing of the claims disclosed. OIG also alleged that PDH paid remuneration to a physician in the form of payments for rent and other Clinic expenses. OIG further alleged that PDH paid remuneration to another physician in the form of payments under a service agreement and a recruitment agreement.

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