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Self-referral whistleblower on physician-owned hospital to receive $3M

A partially physician-owned hospital in Flower Mound, Texas, will pay millions to resolve allegations that it violated Stark Law, and the physician partner who blew the whistle will receive $3 million, according to a Dec. 2 Justice Department news release.

Leslie Jennings, MD, a physician-owner at Flower Mound Hospital, filed a claim against the hospital, arguing that it violated Stark Law by repurchasing shares from physicians aged 63 years or older and unfairly reselling them to younger physicians.

The hospital allegedly selected which physicians would receive the shares and how many shares they would receive based on the volume or value of their procedures.

The hospital agreed to pay $18.2 million to resolve the claims, according to the news release. It will also maintain a compliance program, require key executives to obtain compliance-related certifications and hire an independent review organization to monitor its other arrangements.

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