Medicare Compliance & Reimbursement

TENET FACES MORE SCRUTINY OF PHYSICIAN RELATIONSHIPS

This time, state fraud fighters in Florida are investigating the hospital chain.

Fraud fighters are paying still more attention to potential kickback implications in hospitals' business relationships with physicians.

Fresh on the heels of a federal probe of Tenet Healthcare Corp.'s physician relocation agreements in California, the Santa Barbara, CA-based hospital chain is facing new scrutiny of its physician relationships in the Sunshine State.

According to documents filed with the Securities and Exchange Commission Aug. 9, Florida's Medicaid fraud control unit issued a subpoena to the company on June 6 seeking personnel records and contracts with physicians, physician assistants, therapists and management companies. The inquiry relates to Tenet's Florida facilities.

The disclosure of the Florida probe follows a July 17 criminal indictment of one of Tenet's California hospitals, in which the Department of Justice maintains that the facility's physician relocation agreements were actually disguised payments for referrals. It's just one of Tenet's many legal woes, which also include scrutiny of its outlier payments and the recent $54 million settlement of allegations that doctors at one of its hospitals performed medically unnecessary heart procedures.

Lesson Learned: Hospital compliance officers should make sure their physician recruitment programs are free from potential kickback concerns.

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