July 22, 2008 — Cox Medical Centers
Cox Medical Centers has agreed to pay $60 Million to resolve allegations that the company entered into prohibited financial arrangements in violation of federal laws known as the Stark Law and the Anti-Kickback Statute.
The allegations of the case were that Cox entered into prohibited financial arrangements with physician group Ferrell-Duncan Clinic Inc., which induced physicians to refer patients to Cox, thereby violating both the Stark Law and the Anti-Kickback Statute.
“Our priority is protecting the patients.” Said John F. Wood, United States Attorney for the Western District of Missouri. “These laws are intended to ensure that physicians make referrals to health care facilities based on the best interests of their patients without being induced by payments from hospitals competing for their business. These laws also protect the integrity of the government-funded health care benefit programs.”
See U.S. Dept of Justice Press Release 7/22/08