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Cancer Treatment Centers of America (CTCA), four of its hospitals and other entities agreed to pay $8.22 million in a civil monetary penalty (CMP) settlement over physician compensation, the HHS Office of Inspector General said. The case focused on bonuses.
According to the settlement, CTCA applied to OIG’s Self-Disclosure Protocol (SDP) in December 2017. It contended the hospitals paid improper remuneration to certain physicians from Dec. 1, 2011, through July 31, 2017, in exchange for their referrals to the hospitals, which violated the Stark Law and Anti-Kickback Statute.
Timothy Flanigan, chief legal officer and chief compliance officer for CTCA, says the problem was identified during a routine compliance review. “What we discovered was a technical flaw in the very common bonus compensation program,” he tells RMC. “In the course of reviewing physician compensation, which every provider ought to do with regularity, we discovered it.” Flanigan declined to be specific about the compensation.