New York-Presbyterian Hudson Valley Hospital has agreed to a $6.8 million settlement over allegations of a kickback scheme with a Westchester oncology practice. The scheme involved promises of hundreds of thousands of dollars yearly for patient referrals, including services for a melanoma center, breast cancer center, and intraoperative radiation therapy, many of which were not properly provided or documented, according to the U.S. Attorney's Office.
"Hospitals and physicians are expected to make medical decisions based on the needs of their patients, not improper financial arrangements," said U.S. Attorney Jay Clayton, stressing the importance of ethical healthcare practices. HHS-OIG Special Agent Naomi D. Gruchacz added that corruption undermines community trust, making the settlement a significant step in ensuring integrity in the healthcare system, as reported by the U.S. Attorney's Office.
NYPHV will pay a total of $6,836,764.30 plus interest, with $6,469,410.32 going to the United States and the rest to New York State, after admitting it paid over $4 million for services that were not performed or not properly recorded. Although the hospital knew or suspected by October 2016 that the services were not properly provided, it continued payments through 2019. The case, which began as a whistleblower lawsuit, was investigated by HHS-OIG and led by Assistant U.S. Attorney Jacob Bergman, as stated by the U.S. Attorney's Office.
