Phoenix-based Southwest Orthopedic and Spine Hospital agreed to pay $5.6 million to resolve alleged Stark law violations, according to a Feb. 24 Justice Department news release.
The hospital, operating as Oasis Hospital, USPI and Dignity/USP Phoenix Surgery Centers agreed to the settlement to resolve allegations of improper financial contributions to Southwest Physicians, a physician referral group. The contributions, that took place from 2011 through 2018, were interest payments on convertible bonds issued to the physicians’ group.
USPI disclosed the arrangements to the government following an internal compliance review and independent investigation in 2019.
