New York Attorney General Letitia James has reached a settlement with New York-Presbyterian Hudson Valley Hospital (HVH) related to an alleged kickback scheme. HVH will pay over $616,000 following an investigation that found the hospital made payments to a local oncology practice, which led to the referral of approximately 114 patients to HVH for oncology services, according to the Attorney General's office.
The investigation was conducted jointly by the Attorney General’s Medicaid Fraud Control Unit (MFCU) and the United States Attorney’s Office for the Southern District of New York. They found that between January 2011 and December 2019, HVH and its predecessor made payments totaling millions of dollars to the oncology practice for patient referrals. Many of these payments were for work that was not performed, not properly completed, or lacked time records to verify completion. Attorney General James emphasized the importance of patient trust, stating that New Yorkers should be confident that medical decisions are made based on their best interests rather than financial incentives.
The settlement includes more than $367,000 that will be returned to New York’s Medicaid program, with the remainder directed to the federal government. The case was initiated by a former hospital employee who filed a lawsuit under the federal and New York False Claims Acts, which allow individuals to sue on behalf of the government and potentially receive a portion of any recovered funds.
Attorney General James acknowledged the collaborative efforts of the U.S. Attorney’s Office for the Southern District of New York. The investigation was conducted by a team from the Attorney General’s Office, including Deputy Regional Chief Auditor Matthew Tandle, Chief Auditor Dejan Budimir, and led by MFCU Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The New York MFCU, which works to prevent Medicaid provider fraud and protect nursing home residents from abuse and neglect, is funded by both the state and federal government, with a budget of just over $70 million for fiscal year 2026. The unit also provides a confidential channel for reporting suspected Medicaid fraud.
