The vice president of business development at Hilton Head Hospital is facing federal charges for involvement in a scheme to pay kickbacks to augment Medicare reimbursement. An article in The State reports that the hospital was allegedly paying a prenatal clinic called Clinica de la Mama to refer clients to the hospital. These referrals were specifically for deliveries that are covered by Medicaid.
The purpose of the clinic was to serve uninsured and undocumented women. The scheme allegedly involved an agreement between the clinic and local hospitals in order to generate Medicaid revenue from illegal immigrants. Federal law prohibits the hospital from paying for a referral if any federal health care funding is involved. Whereas undocumented patients are not generally eligible for Medicaid funding, they are covered for emergencies, including child birth.
The executive responsible for the scheme left the company in 2007 to become CEO at Clearview Regional Medical Center, where he allegedly began a similar scheme in violation of the anti-kickback statute. The indictment indicates that the scheme gained significant revenue from Medicaid for servicing women in labor illegally.
Financial incentives can often lead to negative effects for the patient. When financial gain supersedes quality care, providers may no longer be acting in the best interest of their patients. Lopez McHugh attorneys have a long history of seeking justice for wronged individuals. If you or a loved one has suffered as a result of medical negligence, contact us at (877) 737-8525 or fill out a contact form on our website for a free initial case evaluation from a qualified and experienced attorney.
