New York-Presbyterian/Brooklyn Methodist Hospital to Pay $17.3 Million for FCA Violations

In another False Claims Act win for patient care, New York-Presbyterian/Brooklyn Methodist Hospital has agreed to pay $17.3 million for its failure to adequately supervise chemotherapy infusion services, paying kickbacks to doctors based on their patient referral volume, and billing for physician services provided by non-physicians. From this figure, the federal government will receive $16.410 million, and New York State will receive $890,000. The hospital self-reported its noncompliance, which enabled it to mitigate the associated penalties and pay a reduced settlement amount.

DOJ’s subsequent investigation confirmed the illegal kickback scheme, which spanned approximately five-and-a-half years, from April 2010 to October 2015. During this time, physician compensation was partly linked to the number of referrals they could provide to the chemotherapy infusion center. Meanwhile, as the hospital paid kickbacks to boost referrals and pad their physicians’ income, they simultaneously put patient safety at risk. The hospital did not consistently ensure the presence of a supervising physician for certain procedures—in direct contravention of Medicare rules—causing them to overbill Medicare for services not properly provided.

This reduced settlement amount reaffirms a constant government refrain: self-reporting government program noncompliance leads to better outcomes. If you think you may have information relating to healthcare fraud, fraud involving kickbacks, or any other kind of fraud or misconduct involving a government program, please feel free to contact us so we can connect you with a member of the Constantine Cannon whistleblower lawyer team for a free and confidential consultation.