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Mark G. Midei

MedStar Health to pay $35 million to settle allegations of a kickback scheme

MedStar Health to pay $35 million to settle allegations of a kickback scheme

MedStar Health has agreed to pay $35 million to resolve allegations that the hospital system paid kickbacks to a cardiology group in Pikesville in exchange for referrals, Robert Hur, the U.S. attorney for Maryland, and other federal investigators announced Thursday.

The settlement under the False Claims Act involves MedStar Union Memorial Hospital and MedStar Franklin Square Medical Center, both Baltimore-area hospitals.

Officials say MedStar paid MidAtlantic Cardiovascular Associates the kickbacks under the guise of professional service agreements with the hospitals. In return, the cardiovascular office referred patients to Union Memorial for lucrative procedures from Jan. 1,...

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