LA sports medicine clinic pays $3 million to settle kickback claims involving HealthSouth

by bvernia | December 2nd, 2009

DOJ announced on December 1 that the Kerlan Jobe Orthopaedic Clinic, a sports medicine clinic in Los Angeles, has paid $3 million and entered into a Corporate Integrity Agreement with the OIG-HHS. DOJ’s press release explains that the settlement arises from HealthSouth’s self-reporting of kickback allegations which led to a December, 2007 settlement with that company:

The settlement resolves allegations that HealthSouth paid kickbacks to Kerlan Jobe in the form of stock option grants, donations to the Kerlan Jobe Foundation, loan forgiveness on an equipment lease, and a disproportionately high ownership interest in a jointly owned ambulatory surgery center. In exchange for the illegal kickbacks, Kerlan Jobe allegedly referred patients to HealthSouth facilities.

OIG-HHS has not yet posted Kerlan Jobe’s new CIA.

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