Salinas Valley Memorial Hospital System Agreed to Pay $354,000 for Allegedly Violating the Civil Monetary Penalties Law by Paying Remuneration for Unnecessary Equipment Rental

After it self-disclosed conduct to OIG, Salinas Valley Memorial Hospital System (Salinas), California, agreed to pay $354,000 for allegedly violating the Civil Monetary Penalties Law provisions applicable to physician self-referrals and kickbacks. OIG alleged that Salinas paid remuneration to a health care company owned and operated by two physicians on staff at Salinas. OIG further alleged that the remuneration paid took the form of payments under an arrangement for Salinas to pay the health care company to rent a laser when the laser was not needed by Salinas because a second laser had been purchased by Salinas for its own use. OIG contended that Salinas failed to discontinue the arrangement after purchasing its own laser because continued payments to the health care company took into account the value of the company owners' referrals.

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