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Texas Hospital Group Pays U.S. $27.5 Million to Settle False Claims Act Allegations

October 30, 2009
U.S. Department of Justice

A hospital group based in
McAllen, Texas, has agreed to pay the United States $27.5 million to settle
claims that it violated the False Claims Act, the Anti-Kickback Statute and
the Stark Statute between 1999 and 2006, by paying illegal compensation to
doctors in order to induce them to refer patients to hospitals within the
group, the Justice Department announced today. McAllen Hospitals L.P., d/b/a/
South Texas Health System, is a subsidiary of Universal Health Services Inc.,
a company based in Pennsylvania that owns hospitals and other health care
centers around the country. To read the complete article click here.

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