Iowa Hospital pays $4.5 million to settle Stark/FCA claims

by bvernia | August 26th, 2009

The Department of Justice announced that Covenant Medical Center, of Waterloo, Iowa, had paid $4.5 million to settle Stark-based FCA allegations relating to five physicians:

The United States alleged that Covenant violated the Stark Law by paying commercially unreasonable compensation, far above fair market value, to five employed physicians who referred their patients to Covenant for treatment. These physicians were among the highest paid hospital-employed physicians not just in Iowa, but in the entire United States.

The press release announced that the case was jointly handled by DOJ’s Civil Division and the US Attorney’s Office for the Northern District of Iowa.

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