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1:22 pm
Wed December 23, 2009

St-John's to Pay

Tulsa, OK – Justice Dept. says Okla. hospital to pay $13M

TULSA, Okla. (AP) Federal lawyers say a major Tulsa hospital has agreed to pay more than $13 million to settle allegations that claims it submitted to Medicare and Medicaid programs were tainted by the hospital's payments to doctors for patients they referred.

A news release Tuesday from the Justice Department said St. John Health System violated the False Claims Act by paying 23 doctors or physician groups to induce referrals for medical services.

St. John voluntarily reported to the federal Department of Health and Human Services' Office of Inspector General in April 2008 that the agreements with the doctors might have violated federal law. The settlement resulted from the company's disclosure, according to the news release.

St. John chairman Bob Sullivan said in a news release from the hospital system that a new system-wide corporate compliance program will prevent any further violations.

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Information from: Tulsa World, http://www.tulsaworld.com