Sibley Hospital and John Hopkins Health System Settle Allegations of Compensation Arrangements

Paying compensation to cardiologists that exceeded fair market value of services provided allegations

Sibley Hospital (Sibley) and its parent company, Johns Hopkins Health System (Johns Hopkins), have agreed to pay the United States $5 million to resolve allegations arising from claims that Sibley submitted to the Medicare Program.

This settlement agreement resolves allegations that Sibley violated Physician Self-Referral Law, commonly known as the Stark Law by billing Medicare for services referred by ten cardiologists that Sibley was alleged to have been paying compensation that exceeded the fair market value of the services provided.” [emphasis added]

Per Principal Deputy Assistant Attorney, head of the Justice Department’s Civil Division:

  • “Improper financial arrangements between hospitals and physicians can influence the type and amount of health care that is provided”.
  • Department of Justice is “committed to holding accountable those who violate prohibitions designed to protect the integrity of physician decision-making.”
  • “Patients have the right to medical care that is strictly about their health and not about the financial benefit of obligation that a physician might receive or owe”.

The claims resolved by the settlement are allegations only and there has been no determination of liability.