Health Law Highlights

Now is Not the Time to Relax: Record Settlements in Stark Law and False Claims Cases

Summary of article from Lathrop GPM, by Jesse A. Berg:

In May 2024, the University of Pittsburgh Medical Center (UPMC) settled a False Claims Act case for $38 million, marking one of the largest settlements in U.S. history for alleged Stark Law violations. The case emphasizes the importance of fair market value compensation in hospital-physician financial arrangements and debunked the idea that a Department of Justice (DOJ) decision not to intervene in an FCA case means the issue is resolved. The case underscores the need for healthcare organizations to ensure their physician compensation practices can withstand increased regulatory scrutiny and comply with Stark Law principles.