Siouxland Surgery Center, doing business as Dakota Dunes, S.D.-based Dunes Surgical Hospital, United Surgical Partners International and USP Siouxland, agreed to pay about $12.76 million to resolve False Claims Act allegations.
From at least 2014 through 2019, Dunes Surgical Hospital made large financial contributions to a nonprofit affiliate of a physician group that made patient referrals to Dunes Surgical Hospital, according to a Sept. 16 news release from the Justice Department.
The agreement also resolves allegations that during the same period, Dunes Surgical Hospital provided a different physician group with free or below market value clinic space, staff and supplies.
Both of the arrangements violated the Anti-Kickback Statute and Stark Law.
Dunes and USPI disclosed the arrangements to the U.S. government following an internal compliance review and independent investigation, as well as cooperated with the government during its investigation.
USPI has had partial ownership of Dunes Surgical Hospital through USP Siouxland since July 1, 2014, the release said.