Radiation Therapy Referral Kickback Arrangements with Investors.
A national operator of radiation therapy centers, has agreed to settle a False Claims Act action alleging that it submitted claims violated the Anti‑Kickback Statute by paying of $11.5 million and entering into a 5 year Corporate Integrity Agreement with the Office of Inspector General. The arrangement involved payments to investors who were allegedly targeted because of their referral potential to the therapy centers. The challenged arrangement involved a series of leasing companies that accepted investments from referring physicians. The investment interests resulted in the payment of investment returns that the government considered to be remuneration for referrals in violation of the Anti-Kickback Statute. The whistleblower who originally raised the issue will receive up to $1.725 million.
This case involves a garden variety claim of a kickback by investment interest. The typical investment case involves targeting potential investors who are in a professional position to make referrals to the company in which they are asked to invest. The referral source has a financial incentive to increase referrals. This might be an excellent financial investment scenario, but the problem is that the investment return might well be an illegal kickback; which is potentially a federal felony.
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Source: Health Law Blog