Halifax Settles for $85 Million for Violating the Stark Law

On March 11, the Department of Justice (DOJ) announced that Halifax Hospital Medical Center and Halifax Staffing Inc. (collectively referred to as Halifax) settled with the government for $85 million for allegations of violating the Stark Law and False Claims Act.  The government alleged that Halifax knowingly violated the Stark Law by providing an incentive bonus in six medical oncologists contracts that improperly included the value of prescription drugs and tests that the oncologists ordered and billed to Medicare.  The government also alleged that Halifax knowingly paid three neurosurgeons more than fair market value, which violated the Stark Law.

Halifax will enter into a Corporate Integrity Agreement with the Department of Health and Human Services (HHS) Office of Inspector General (OIG).  The investigation and litigation was carried out by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the OIG.

The DOJ article is available at:

http://www.justice.gov/opa/pr/2014/March/14-civ-252.html.

Department of Justice.  “Florida Hospital System Agrees to Pay the Government $85 Million to Settle Allegations of Improper Financial Relationships with Referring Physicians.”  11 Mar. 2014.