Law enforcement authorities have indicted executives and physicians affiliated with the physician-owned Forest Park Medical Center for allegedly paying or accepting bribes and kickbacks in exchange for referring patients to the hospital.
According to an announcement released by the Department of Justice, top-level executives and doctors affiliated with the hospital had established shell companies and acquired patient referrals to the hospital by channeling millions of dollars in bribes to lawyers, surgeons, workers’ compensation specialists, primary-care physicians, and many others.
The scheme lasted a full four years – from 2009 to 2013 – and during this time period, the hospital paid nearly $40 million in kickbacks to attain patient referrals.
Ultimately, the hospital ended up billing those patients’ insurance plans that included Medicare and Medicaid, over half a billion dollars and collected nearly $200 million.
All the individuals involved in the scheme have been charged with conspiracy to receive and pay bribes. The maximum penalty they face is five years in Federal prison and $250,000 in fines.
Apart from that, the founders of the hospital have also been charged with multiple crimes, including conspiracy to commit money laundering and violating the federal anti-kickback statute.
As an out-of-network hospital, Forest Park Medical Center charged high prices for its services. Founded in 2009, the hospital refused to join health plan networks to maximize the profits gained by its physician investors. To help them make higher profits, according to the Justice Department, the hospital allowed its owners and managers to conduct out-of-network billing reimbursement.
