Texas Hospital Settles Kickback Allegations Relating to Marketing Services Payments

King & Spalding

On December 4, 2017, the DOJ announced a $7.5 million settlement with Pine Creek Medical Center, a Dallas-based physician-owned hospital.  The settlement resolves allegations that the hospital paid physicians kickbacks in the form of marketing services in exchange for surgical referrals.

Pine Creek allegedly paid for marketing and advertisements for certain physicians, including paying for advertisements in a number of local and regional publications, radio advertisements, television advertisements, pay-per-click advertising campaigns, billboards, website upgrades, brochures, and business cards. The two whistleblowers were former employees of Pine Creek’s marketing department. Notably, another Dallas-area physician-owned hospital also settled kickback allegations involving marketing services in 2015.

To view the DOJ press release, click here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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