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#1320397 - 01/25/12 09:02 PM
Ithaca Hospital Fined Millions
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newsman38
Senior Member
Registered: 03/21/01
Posts: 3756
Loc: Fourth Estate
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Ithaca hospital pays $3.5 million to settle charges it improperly recruited doctors
Cayuga Medical Center is paying $3.5 million to settle allegations it improperly used Medicare and Medicaid money to pay for expenses of private medical practices that employ doctors recruited to the area by the Ithaca hospital.
The settlement was announced today by the U.S. Attorney’s Office in Syracuse and the hospital.
The settlement resolves a whistleblower lawsuit filed by Dr. Daniel Jorgenson, a plastic surgeon who formerly practiced in Ithaca. That lawsuit, filed on behalf of the state and federal governments, alleged the hospital recruited doctors to the area using financial agreements that violated the federal Stark Law.
That law governs recruitment agreements between hospitals and doctors. The law prohibits a doctor from referring patients to a hospital if the doctor has a financial relationship with the hospital, unless an exception applies. The law also bars hospitals from billing Medicare, the federal health insurance program, for a prohibited referral.
Federal regulations allow hospitals to pay for certain expenses of medical practices that employ doctors recruited to the area by hospitals. But Jorgensen alleged the hospital paid for expenses not permitted by the regulations, improperly extended a recruitment agreement and improperly billed Medicare and Medicaid for the expenses.
Dr. Rob Mackenzie, president and CEO of Cayuga Medical Center, said...the fine will not impact the hospital’s operations.
Wednesday, January 25, 2012, 12:23 PM
James T. Mulder / The Post-Standard
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#1320871 - 01/27/12 06:50 PM
Re: Ithaca Hospital Fined Millions
[Re: newsman38]
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Rich_Tallcot
Senior Member
Registered: 01/19/03
Posts: 3759
Loc: Union Springs, New York
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Sounds like Jorgenson had a bone to pick. I went there last Saturday because I was in the area. The difference between there and Auburn is day and night. I was in and out in about an hour including x-rays. The Doc even called me Sunday afternoon to ask how I felt. Heck, if I had gone to Auburn I would have probably still been there. Auburn likes to get maximum billing time, transpose numbers on your insurance card so your insurance does not pay and then bill me direct in full at the wrong address. If I can drive Cayuga Medical is worth the hour and a half round trip.
Got a letter today from Cayuga Medical Urgent Care and was surprised it was not my bill, but a survey.
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