KSLA News 12 Shreveport, Louisiana |South Texas Health System fined by government
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Associated Press - October 30, 2009 11:45 PM ET
McALLEN, Texas (AP) - The South Texas Health System has agreed to pay the government $27.5 million to settle claims that it illegally paid doctors to refer patients to hospitals within the group.
The settlement was announced Friday in Washington by the Department of Justice.
The hospital group, based in McAllen, was accused of violating the False Claim Act, the Anti-Kickback Statute and the Stark Statute between 1999 and 2006.
The government alleged that the payments were disguised through a series of sham contracts, including medical directorships and lease agreements.
South Texas is a subsidiary of Pennsylvania-based United Health Services Inc. An operator at an after-hours number said no one was available to comment. The company did not immediately respond to an e-mail.
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