Phoenix Surgeons’ Hospital Shells Out $5.6 Million to End Kickback Probe

A Phoenix specialty hospital that built its brand on surgeon leadership is cutting a multimillion-dollar check to the federal government after regulators said patient referrals were tainted by improper financial deals.

Southwest Orthopedic and Spine Hospital LLC, which does business as OASIS Hospital, and two management partners agreed to pay $5.6 million to resolve federal allegations tied to a physicians’ group that sent patients to the facility, the U.S. Department of Justice said Tuesday.

Federal settlement

The U.S. Department of Justice said OASIS Hospital, United Surgical Partners International (USPI) and Dignity/USP Phoenix Surgery Centers LLC agreed to the $5.6 million civil settlement to resolve alleged False Claims Act violations.

According to the department, from 2011 through 2018 the hospital and its partners made improper financial contributions to a physician group that referred patients to OASIS. The government alleges those arrangements violated federal laws that restrict payments tied to referrals when federal health programs are on the hook…

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