ABC affiliate KCRG reports that Mercy Medical Center in Cedar Rapids, Iowa, will pay the U.S. Department of Health and Human Services (HHS) more than $14.8 million to settle a violation of the Civil Monetary Penalties Law.
“The hospital told the government it may have broken the law regarding an outpatient surgery center and doctors who own part of it,” reports the TV station. “The hospital is accused of letting an investment company avoid paying bills and give profit checks that should not have been sent.”
It writes that HHS “has rules against this to make sure doctors don’t get special financial favors for working with specific hospitals.”
KCRG published this statement from Mercy:
“When Mercy uncovered an issue related to the fees and expenses for its ambulatory surgery center, we immediately conducted a thorough internal review and reported the issue to the Office of Inspector General (OIG). Mercy has since made the required changes to resolve the matter to ensure compliance with federal regulatory guidelines. The matter is now closed.
“The settlement with the OIG included a payment. The funds used for the settlement were not taken from our operating budget or donor contributions, meaning there is no impact on patient care, staffing, or day-to-day operations.
“Moving forward, we remain fully focused on delivering excellent, compassionate, high‑quality care to the communities we serve.”
