Oklahoma Hospital, Physicians Settle FCA Case for $72M; FMV Is Theme

By Nina Youngstrom

In a complicated false claims case that boils down to fair market value allegedly run amok, an Oklahoma hospital, related entities and two physicians agreed to pay $72.3 million to settle allegations a physician group got sweetheart deals in exchange for referrals, the Department of Justice (DOJ) said July 8.[1] This is another high-dollar False Claims Act (FCA) result stemming from a case pursued by a whistleblower even though DOJ bowed out.

Oklahoma Center for Orthopaedic & Multi-Specialty Surgery (OCOM), a specialty hospital in Oklahoma City; USP OKC Inc. and USP OKC Manager Inc. (collectively USP), its part owner and management company; Southwest Orthopaedic Specialists PLLC (SOS), an Oklahoma City-based physician group; and two SOS physicians resolved allegations under the federal and Oklahoma Medicaid FCA of “improper relationships” between OCOM and SOS from 2006 through 2018, DOJ said. In exchange for patient referrals from SOS physicians, OCOM and USP allegedly provided remuneration in the form of:

  • Free or below fair market value office space, employees and supplies;

  • Above fair market value compensation;

  • Equity buyback provisions and payments for certain SOS physicians that were above fair market value; and

  • Preferential investment opportunities related to OCOM anesthesia services.

This document is only available to subscribers. Please log in or purchase access.
Purchase Login
 


Would you like to read this entire article?

If you already subscribe to this publication, just log in. If not, let us send you an email with a link that will allow you to read the entire article for free. Just complete the following form.

* required field

First name field cannot be blank!
Last name field cannot be blank!
We will send you an email that will give you access to this entire article.
Email field cannot be blank!
Enter a valid email!
Company field cannot be blank!
Enter a valid company!
Title field cannot be blank!

We're committed to your privacy. The Society of Corporate Compliance and Ethics (SCCE) & Health Care Compliance Association (HCCA) uses the information you provide us to contact you about our relevant content, products, and services. For more information, check out our Privacy Policy.


About SCCE

The Society of Corporate Compliance and Ethics (SCCE) is a non-profit, member-based professional association. SCCE supports our members' work with education, news, and discussion forums. We are a community of leaders, defining and shaping the corporate compliance environment across a wide range of industries and geographic regions. In developing and maintaining effective ethics and compliance programs, our members strengthen and protect their companies.

952.933.4977

About HCCA

The Health Care Compliance Association (HCCA), is a 501(c)6 non-profit, member-based professional association. HCCA was established in 1996 and is headquartered in Minneapolis, MN. We provide training, certification, and other resources to over 10,000 members. Our members include compliance officers and staff from a wide range of organizations, including hospitals, research facilities, clinics and technology service providers.

952.988.0141

Facebook Twitter LinkedIn
Copyright © 2024 by Society of Corporate Compliance and Ethics (SCCE) & Health Care Compliance Association (HCCA). No claim to original US Government works. All rights reserved. All information provided through this site, including without limitation all information such as the “look and feel” of the site, data files, graphics, text, photographs, drawings, logos, images, sounds, music, video or audio files on this site, is owned and/or licensed by SCCE & HCCA or its suppliers and is subject to United States and international copyright, trademark and other intellectual property laws. Any third party logos and/or content provided herein is owned by such third parties and is used by permission herein. Your use of this site to is subject to our Terms Of Use and Privacy Statement.
Cookie settings