Medscape August 5, 2024
Strapped for cash and searching for new profits, Tennessee-based Erlanger Health System illegally paid physicians’ excessive salaries in exchange for patient referrals, the US government alleged in a federal lawsuit.
Erlanger changed its compensation model to entice revenue-generating doctors, paying some two to three times the median salary for their specialty, according to the complaint.
The physicians in turn referred numerous patients to Erlanger, and the health system submitted claims to Medicare for the referred services in violation of the Stark Law, according to the suit, filed in US District Court for the Western District of North Carolina.
The government’s complaint “serves as a warning” to health care providers who try to boost profits through improper financial arrangements...
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