CMS Announces Five More Settlements Under Self-Referral Disclosure Protocol

CMS has announced five settlements with hospitals resolving alleged violations of the self-referral law. The hospitals disclosed the arrangements under the agency’s self-referral disclosure protocol (SRDP), created pursuant to section 6409 of the Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148) .

On March 29, 2013, CMS settled violations disclosed by an acute care hospital in Louisiana for about $317,600. The hospital’s arrangements with individual physicians, physician practice groups, and staffing organizations did not qualify for the exceptions for personal services or isolated transactions.

A February 2013, settlement with a South Carolina general acute care hospital involved arrangements with physicians and physician group practices that did not meet the requirements for exceptions for fair market value, office space rental, and personal service arrangements. The hospital agreed to pay $256,000 to resolve the violations.

On March 7, 2013, CMS settled violations disclosed by a Massachusetts acute care hospital for $199,400. The hospital’s arrangements violated the requirements concerning the definition of “entity,” office rental, and services of physicians and professional staff, including the interpretation of electrocardiograms.

CMS also announced two May 7, 2013, settlements of self-referral violations. The first involved a rehabilitation hospital that violated the ownership requirements and failed to satisfy the “whole hospital” exception. The Texas facility agreed to pay about $23,700. A Minnesota also settled recruitment violations for $760.