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Category: Daily News

How Hospitals Make You Sick

If the previous occupant of a hospital bed received antibiotics, the next patient who uses that bed may be at higher risk for a severe form of infectious diarrhea, according to a new study reviewed in Reuters Health.

Clostridium difficile (C. diff) diarrhea causes 27,000 deaths each year in the U.S. Hospital patients taking antibiotics are particularly at risk for it, say the authors of the study. Antibiotics disturb the normal healthy bacteria of the gut so a C. diff infection can take hold.

The new study shows that “antibiotics given to one patient may alter the local microenvironment to influence a different patient’s risk” for C. diff infection, the researchers wrote in JAMA Internal Medicine.

“Other studies have also demonstrated that antibiotics can have a ‘herd’ effect – in other words, that antibiotics can affect people who do not themselves receive the antibiotics,” said lead author Dr. Daniel Freedberg of Columbia University Medical Center in New York.

Freedberg and his colleagues studied more than 100,000 pairs of patients who sequentially occupied a given hospital bed in four institutions between 2010 and 2015, not including those who had recent C. diff infection or whose prior bed occupant was in the bed for less than 24 hours.

More than 500 patients, or less than 1 percent of the total group, developed a C. diff infection as the second bed occupant.

The infections were 22 percent more likely when then previous occupant had received antibiotics.

Other factors about the previous bed occupant were not associated with C. diff risk.

People can be carrying C. diff organisms without having any symptoms, Freedberg told Reuters Health by email. When these colonized patients receive antibiotics, C. diff may expand within their gut microbiome and start shedding more spores, which means more spores on the bed, the bedside table, the floor, and other areas, he said.

“The next patient who enters the room is thus more likely to be exposed to C. diff spores,” he said. “It’s not easy to sterilize the room/bed between patients because C. diff spores are extremely hardy. To be killed, they need to be soaked in a bleach-containing cleaning agent for an adequate amount of time.”

About half of patients in acute care facilities take antibiotics on any given day, said Kevin Brown of the University of Toronto Dalla Lana School of Public Health, who was not part of the new study.

“That’s a huge portion of patients that could be involved in spreading the infection,” Brown told Reuters Health by email.

But the increased risk is modest, Freedberg added.

“There was a 22 percent relative increase in risk for C. diff with the prior patient’s antibiotics but there was a four-fold increase in risk related to the antibiotics received by the patient him- or herself,” he said.

Other patients, such as other antibiotic user patients within the ward, could have contributed increased risk as well, Brown said.

“Doctors (and patients) should avoid antibiotics in situations where they are not necessary,” Freedberg said. “Too often, antibiotics are prescribed without clear indications.”

“I think this evidence needs to be taken just as an association that needs further exploration,” said Jack A. Gilbert of Argonne National Laboratory in Argonne, Illinois, who was not part of the new study. “While it would be tempting to use these results to change policy, there are so many uncertainties here that such a move would not be advisable.”

Study Reviews Heart Attack AOE-COE Triggers

Intense physical exertion or extreme emotional upset can each trigger a heart attack, and the risk may be highest if the two are combined, according to a new study reviewed in Reuters Health.

“Our study is the largest study exploring this issue, and unlike previous studies we included people from many different countries and ethnicities,” said lead author Andrew Smyth of the Population Health Research Institute at McMaster University in Hamilton, Ontario, Canada.

The association between the triggers and the onset of heart attack was similar across all locations, he added.

The researchers used data from more than 12,000 cases of first heart attack in 52 countries, recorded in the INTERHEART study. After the heart attack, study staff asked patients if they had been engaged in heavy physical exertion or were angry or emotionally upset in the hour leading up to the heart attack and in the same hour on the previous day.

Almost 14 percent said they had been engaged in heavy physical exertion and 14 percent said they were angry or emotionally upset in the hour leading up to the heart attack.

Being angry or physically strained roughly doubled the heart attack risk. If the two factors were combined, heart attack was about three times as likely, as reported in Circulation.

The researchers didn’t explicitly define “upset” or “exertion” for patients, who decided this for themselves, Smyth told Reuters Health by email.

In terms of heart attack triggers, there was no difference between those with and without diabetes or high blood pressure, he said.

“It’s useful to know that either getting angry to an extreme or exercising to an extreme could potentially be harmful especially for middle aged people with cardiac risk factors,” said psychologist Barry Jacobs, director of behavioral sciences at the Crozer-Keystone Family Medicine Residency Program in Springfield, Pennsylvania, and spokesperson for the American Heart Association, who was not part of the new study.

“One of the weaknesses of the study is that it doesn’t define what an extreme physical exertion experience would be or an extreme anger experience,” Jacobs told Reuters Health by phone.

Everyone can benefit from keeping their tempers in check, and when angry, it’s not a good idea to throw yourself into extreme physical exercise, he said.

Study Says Comp Costs Increase as Benefits Decline

Workers’ compensation benefits as a share of payroll are reaching historically low levels, even as employers shoulder more costs, according to a new report from the National Academy of Social Insurance

Until 1995, the U.S. Social Security Administration (SSA) produced the only comprehensive national data on workers’ compensation benefits, coverage, and costs with annual estimates dating back to 1946. SSA discontinued the series in 1995 after publishing data for 1992 -1993. The National Academy of Social Insurance assumed the task of reporting national data on workers’ compensation in 1997. The Academy published its first report that year, extending the data series from 1993 through 1995, and has produced the report annually ever since.

The 19th annual report of the National Academy of Social Insurance on workers’ compensation benefits, coverage, and costs is now available. This report presents new data on workers’ compensation programs for 2014 and updated estimates for 2010 – 2013 with newly available data. The revised estimates in this report replace estimates in the Academy’s prior reports.

The Academy’s measures of benefits and costs are designed to reflect the aggregate experience of two stakeholder groups: workers who rely on compensation for workplace injuries and employers who pay the bills.

Despite growth in employment during the economic recovery – and the corresponding uptick in employees covered by workers’ compensation – benefits per $100 of payroll fell from $0.97 in 2013 to $0.91 in 2014, the lowest level since 1980. Benefits as a percent of payroll declined in 46 states between 2010 and 2014, continuing a national trend in lower benefits relative to payroll that began in the 1990s.

Costs to employers, on the other hand, continue to climb. Between 2010 and 2014, employer costs associated with workers’ compensation – such as insurance premiums, reimbursement payments, and administrative costs – grew at a rate nearly 5 times faster than benefits. Nationally, employer costs exceeded total benefits in 2014 by $29.5 billion while costs per $100 of payroll reached $1.35, according to the report, Workers’ Compensation: Benefits, Coverage, and Costs (PDF).

“What we are seeing in these data are still the effects of the economy gradually coming out of the recession of 2008-10,” said Marjorie Baldwin, Chair of the Academy’s Study Panel on Workers’ Compensation Data and Professor of Economics in the W. P. Carey School of Business at Arizona State University. “As more workers are hired, employers immediately incur higher costs for workers’ compensation insurance – the increase in benefits paid comes with a lag, especially for the most costly long-term injuries.”

The ratio of benefits paid per $1 of employer cost has varied over the last 20 years from a high of $0.82 in 1999 to a low of $0.63 in 2006. The ratio has declined from $0.81 in 2010 to $0.68 in 2014, but it is still greater than in the five years leading up to the recession of 2008.

“Declining levels of workers’ compensation benefits could mean that workers are getting injured less frequently and/or that they are returning to work sooner when they do get injured,” said Christopher McLaren, Workers’ Compensation Senior Research Associate at the Academy. “But there have been a number of changes in state laws in recent years limiting access to workers’ compensation benefits, which may also be a factor.”

Class Action Allowed for High Cost of Medical Record Copies.

In 2011, plaintiff Kristen Nicodemus was admitted to Saint Francis Hospital for treatment of injuries sustained when she was burned. Later she engaged an attorney to represent her in a potential lawsuit. This attorney sent a fax to Saint Francis asking that it provide her copies of her medical records, and attaching a signed authorization to release. This was sent to HealthPort who provided Saint Francis with patient medical record release-of-information services pursuant to a contract.

HealthPort responded to plaintiff’s attorney’s request for medical records, sending a “California Agent Fee Information” sheet and an invoice. In a section explaining the invoice charges, the information sheet quoted section 1158, acknowledging its requirement that medical providers must allow attorneys to inspect and copy patient records on presentation of a patient’s written authorization. The information sheet, however, went on to state: “HealthPort has agreed to copy records for you, upon your hiring of HealthPort as your representative/agent for purposes of making such copies. The rates that HealthPort is charging do not fall under [Evidence Code] 1158.”

HealthPort personnel index all requests, assigning them to categories, depending on the context. Requests involving subpoenas or workers’ compensation claims, respectively, for example, are grouped in separate categories.

Evidence Code Section 1158 is designed to require medical providers to produce the medical records demanded by patients prior to litigation in a timely fashion and at a reasonable cost.

At the time of plaintiff’s appeal, section 1158 provided in pertinent part: “Whenever, prior to the filing of any action or the appearance of a defendant in an action, an attorney at law . . . presents a written authorization signed by an adult patient [or by a patient’s guardian, conservator, parent, or personal representative], . . . a licensed hospital . . . shall make all of the patient’s records . . . available for inspection and copying by the attorney at law . . . promptly upon presentation of the written authorization.”

The statute authorizes the requesting attorney to employ a professional photocopier to obtain the records on the attorney’s behalf, and the provider must produce the records within five days. (Ibid.) All “reasonable costs” incurred by a medical provider in locating, copying, or making the records available may be charged to the requesting party, subject to limits set forth in the statute, which include $0.10 per page for reproducing documents measuring up to 8.5 by 14 inches, $0.20 per page for producing documents from microfilm, and clerical costs not to exceed $16 per hour per person for locating and making records available.

HealthPort’s invoice to plaintiff’s counsel sought payment of $86.52, and provided directions for payment. The amount included a $30 “basic fee,” a $15 “retrieval fee,” $25.25 for copying 101 pages at $0.25 per page, $10.30 for shipping, and $5.97 for sales tax. Plaintiff’s attorney paid HealthPort’s invoice in full, noting on the check’s memo line, “under protest – in violation of CA EVID CODE 1158,” He later filed suit alleging causes of action for violation of section 1158 and violation of the Unfair Competition Law (UCL) (Bus. & Prof. Code, § 17200 et seq.) and moved to have the action certified as a class action. The trial court denied this motion and plaintiff appealed. The Court of Appeal reversed in the published decision of Nicodemus v Saint Francis Memorial Hospital..

Section 1158 enables the patient to seek freely advice concerning the adequacy of medical care and to create a medical history file for the patient’s information or subsequent use. It operates to prevent a medical provider from maintaining secret notes which can be obtained by the patient only through litigation and potentially protracted discovery proceedings.

“The common question here is the application of section 1158 to HealthPort’s uniform practices in response to attorney requests for medical records. The fact that each class member ultimately may be required to establish his or her records request was submitted before or in contemplation of litigation does not overwhelm the common question regarding those uniform copying practices. The trial court erred in ruling otherwise.”

So How Many Doctors Are Getting Kickbacks Anyway?

Nearly three-quarters of U.S. dermatologists received payments worth a collective $34 million from drug companies in 2014, according to a new analysis of a public database reported by Reuters Health.

In most cases, the payments were worth less than $50, researchers found. But a few doctors were taking industry payments worth at least $93,622.

“Most dermatologist in the U.S. – about 73 percent according to this database – received some form of payment from industry,” said lead author Dr. Marie Leger, a dermatologist at Weill Cornell Medicine and NewYork-Presbyterian in New York City. “That being said, most dermatologists get a modest amount from industry.”

It’s difficult to know what these payments mean, but seeing how money flows from industry to the dermatology profession is important to understanding the relationship between those two groups, Leger told Reuters Health.

She and her colleagues analyzed data from the Centers for Medicare and Medicaid Services Sunshine Act Open Payment database, which records payments made to doctors from U.S. medical manufacturers and group-purchasing organizations.

They found that in 2014, 8,333 dermatologists received 208,613 different payments totaling about $34 million. Those payments could take a number of forms, including gifts, grants, education, consulting and food and beverages.

That $34 million, however, represents less than 1 percent of the roughly $6.5 billion paid to doctors in 2014, the researchers report in JAMA Dermatology.

A quarter of dermatologists received less than $100, 63 percent received less than $500 and 78 percent received less than $1,000. The top 10 percent of doctors received at least $3,940, which represented 90 percent of the total paid to dermatologists.

“I think we knew there were interactions, but we didn’t know how many interactions there were,” said lead author Dr. Hao Feng, of NYU Langone Medical Center in New York City. “We were surprised that in general it was a modest amount of money.”

The top 1 percent of dermatologists received at least $93,622, which accounted for 44 percent of the total.

About 81 percent of the compensation to the dermatologists came from drug companies.

Almost a third of payments were listed as speaking fees, about 22 percent were listed as consulting fees and about 17 percent were listed as research payments.

Dr. Jack Resneck, of the University of California, San Francisco School of Medicine, points out in an accompanying editorial that the payment database is limited.

He wrote that it can be improved if providers are allowed to see what payments industry submit and by the categories better describing interactions.

“Some straightforward changes would substantially improve the situation,” he wrote.

Since the database is missing information about the context of these payments, it’s difficult to get a better understanding of the interaction between industry and doctors, Feng told Reuters Health.

“That’s something that is really difficult – if not impossible – to get from this database,” said Feng.

For example, Leger wondered if the financial connection between industry and dermatology may affect how the specialty advocates for patients in terms of drug costs.

“I think this study maps points of contact in an important way and I think there’s more to explore for what those points of contact mean,” she said.

Governor Vetoes Bill Exempting Comp Policy Oversight

Current law authorizes workers’ compensation insurance policies to be either standard, guaranteed premium policies, or deductible policies and requires insurers to file workers’ compensation insurance policies and endorsements with the WCIRB. The WCIRB is the insurance commissioner’s designated statistical agent for workers’ compensation purposes. There are a range of functions the WCIRB performs on behalf of and with the approval of the commissioner.

Insurers are prohibited from the use of the policy or endorsement until 30 days have passed, or the commissioner has approved the filing. It is unlawful for an insurer to use an ancillary agreement if the commissioner notifies the insurer that the agreement does not comply with the law

AB 1922 was introduced this legislative session to modify this requirement. It attempted to establish exceptions from workers’ compensation insurance policy filing requirements for large employers that purchase high deductible policies. It was supported by the American Insurance Association (AIA), the California Chamber of Commerce, Liberty Mutual Insurance, and the National Association of Mutual Insurance Companies (NAMIC).

It was opposed by the California Department of Insurance. It however was approved by both houses of the legislature and sent to Governor Brown for signature. He vetoed the law.

In his veto message he said “I am supportive of efforts to increase the ability of insurance carriers to efficiently conduct their business. This bill, however, reverses Department of Insurance regulations that have been in effect less than six months. These regulations are designed to promote consumer protection and transparency. Let’s allow time for them to work.”

And the Insurance Commissioner was appreciative of his Veto. “I thank Governor Brown for his thoughtful and reasoned veto of AB 1922,” Commissioner Jones said. “I opposed the bill, because it would have created a loophole enabling workers’ compensation insurers to limit or avoid prior review of terms and conditions imposed on businesses. AB 1922 undercut the Department of Insurance’s ability to protect businesses from becoming victimized by some workers’ compensation insurer contracts and it would have resulted in more litigation between businesses and insurers. The bill was bad for employers of all sizes.”

Recent cases highlighted problems when CDI lacks oversight.

Last month, after the department served on them an order to show cause why the insurers should not be barred from selling the policies, two Berkshire Hathaway companies agreed to stop selling certain workers’ compensation policies with provisions not filed with CDI. The policies had serious and unexpected negative consequences for many California employers, including cancellation penalties of $1 million, non-renewal penalties, provisions shifting most if not all of the risk back to the employer, and provisions requiring any disputes with the insurer to be resolved in the British Virgin Islands under Nebraska law. These unfiled policies were successfully challenged by Shasta Linen, a small business in Sacramento.”

A range of business groups joined the Insurance Commissioner in opposing the bill, including the California Hispanic Chambers of Commerce, the California Small Business Association, the Asian Business Association, and the Sacramento Rainbow Chamber of Commerce.

Property/Casualty Association Responds to DOL Critique

A new report from the Labor Department had harsh words for the current condition of various state workers’ compensation systems.

For example, the DOL says “Despite the sizable cost of workers’ compensation, only a small portion of the overall costs of occupational injury and illness is borne by employers. Costs are instead shifted away from employers, often to workers, their families and communities. Other social benefit systems – including Social Security retirement benefits, Social Security Disability Insurance (SSDI), Medicare, and, most recently, health care provided under the Affordable Care Act – have expanded our social safety net, while the workers’ compensation safety net has been shrinking. There is growing evidence that costs of workplace-related disability are being transferred to other benefit programs, placing additional strains on these programs at a time when they are already under considerable stress.

The report calls for “exploration” of “the establishment of standards that would trigger increased federal oversight if workers’ compensation programs fail to meet those standards.”

Not unexpectedly, the report caused a firestorm of controversy, and industry rebuttal.

The Property and Casualty Insurers Association of America is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association.

PCI members write more than $183 billion in annual premium, 35 percent of the nation’s property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 27 percent of the homeowners market, 32 percent of the commercial property and liability market and 34 percent of the private workers compensation market. It is one of the major industry organizations that has formulated a response.

PCI says that “while the Department of Labor report highlights some of the challenges state workers compensation systems are facing, in many sections it provides an inaccurate assessment of how the system really works for the vast majority of injured workers.”

“Overall, today’s work environment is safer which means fewer workplace accidents. When workers are injured, on average they are receiving higher benefits than in the past, and health outcomes for injured workers have improved. This means workers are able to return to work sooner and resume productive employment. These improvements to the state workers compensation system have all been achieved without federal involvement.”

“While no system is perfect, the state-based system has significantly evolved and will continue to evolve. For over a century, state workers compensation laws have successfully sought to strike a balance between the interests of employers and their employees while promoting safe workplaces. State workers compensation systems guarantee that injured workers receive medical treatment at no cost to the worker and compensation for lost wages and permanent injury, while avoiding cost shifting to families and public assistance programs.”

“Employers and insurers are dedicated to supporting reforms that will improve the effectiveness of the state workers compensation system for all stakeholders. PCI and its members will continue to support reforms at the state level that are targeted to maintain an effective and balanced system for all stakeholders.”

Labor Contractor Gets 9 Months Sentence in Payroll Fraud Case

A Corcoran labor contractor who cheated a workers’ compensation insurer out of millions of dollars in premiums has been sentenced to nine months in jail,

Michael Harold Kreger, 63, of Visalia, owner of Michael Kreger Contracting, was sentenced in California Superior Court in Kings County after his conviction on three felony counts of insurance fraud with a white collar crime enhancement charge for cheating his workers’ compensation insurer out of more than $5.4 million in premiums.

After receiving a referral from Kreger’s workers’ compensation insurer, detectives from the California Department of Insurance launched an investigation into Kreger’s business practices.

The investigation included an audit of Kreger’s payroll records provided to his insurer and what he provided to the Employment Development Department, which revealed that for over four years Kreger intentionally underreported his payroll in order to mislead his workers’ compensation insurer and obtain artificially low workers’ compensation insurance premiums.

Kreger pleaded no contest to three felony counts of insurance fraud with a white collar crime enhancement.

He was released on house arrest and electronic monitoring after two days in jail, according to jail records.

“This case is a clear example of Kings County’s prosecution team standing up for every business owner and employee who is affected by fraudulent business practices that manipulate the system and seek financial gain at the expense of injured employees and upstanding business owner. I am proud of the contribution and work done by all the investigation teams, especially Deputy District Attorney Michael Casaus, Senior Investigator Nicole Lucero, and Legal Secretary Lynn Rikard on behalf of our office.” said Kings County District Attorney Keith Fagundes.

The Kings County District Attorney successfully prosecuted this case, leading to Kreger’s conviction and sentencing of 270 days (9 months) in jail, five years probation, 1500 hours of community service, and ordered restitution exceeding $5.4 million.

Feds May Consider State Workers’ Compensation Oversight

An article on the ProPublica/NPR website proudly announces that a “race to the bottom” in state workers’ compensation laws has the Labor Department calling for “exploration” of federal oversight and federal minimum benefits.

This announcement is the culmination of many ProPublica/NPR stories that featured injured workers who lost their homes, were denied surgeries or were even denied prosthetic devices recommended by their doctors.

The ProPublica/NPR series prompted a letter last fall from 10 prominent Democratic lawmakers, who urged Labor Department action to protect injured workers in the wake of a ProPublica/NPR series on changes in workers’ comp laws in 33 states. The ten ranking Democrats on key Senate and House committees claimed there was a “pattern of detrimental changes in state workers’ compensation laws” that have reduced protections and benefits for injured workers over the past decade.

The response to this letter was a report from the Labor Department that calls for “exploration” of “the establishment of standards that would trigger increased federal oversight if workers’ compensation programs fail to meet those standards.”

The report claims that there “have seen significant changes to the workers’ compensation laws, procedures, and policies in numerous states, which have limited benefits, reduced the likelihood of successful application for workers’ compensation, and/or discouraged injured workers from applying for benefits. These include changes that have resulted in the denial of claims that were previously compensated, a decrease in the adequacy of cash benefits to those awarded compensation, imposition of restrictions regarding the medical care provided to injured workers, and the institution of new procedural and evidentiary rules that create barriers for injured workers who file claims. In addition, the elimination by several state legislatures of Second Injury Funds – that is, state-administered funds that provide compensation for injuries not otherwise covered – creates additional holes in the fabric of insurance and coverage.

The agency also suggests a fresh look at reestablishing a 1972 Nixon administration commission that recommended minimum benefits and urged Congress to act if states failed to comply.

To clearly understand the implications of this recommendation, it is important to know the history of the financial waste triggered by the Nixon Commission report after it was published in 1972. In essence, the report was critical of just about every aspect of the various state workers’ compensation systems, and recommended improvements or enhancements to every specie of benefits. If states did not improve their programs in conformity to these recommendations, there was a threat of a federal takeover of all state systems.

For example, the Nixon Commission concluded in 1972 that “Many disabled workers fail to receive vocational services partly because they are not aware of their rights, partly because they lack motivation because of a fear they will lose compensation benefits if rehabilitated, and partly because they cannot afford the out-of-pocket costs of maintenance during instruction.”  Thus the report went on to “recommend that the medical-rehabilitation division within each State’s workmen’s compensation agency be given the specific responsibility of assuring that every worker who could benefit from vocational rehabilitation services be offered those services”.

A few years later, California, as well as many other states, appeased the federal government by adopting some of the Nixon Commission mandates. For example California adopted mandatory vocational rehabilitation. The history of that financial disaster is well documented. Rehabilitation programs easily cost more than $100,000 per claim and rarely produced a return to work outcome. A whole cottage industry of vendors grew around the program. The futility of the program became apparent about 20 years later when a $16,000 cap was placed on the costs of a rehabilitation program. That “reform” was subsequently ineffective, so vocational rehabilitation as a program was scrapped, and instead there have been various forms of training vouchers that pay for training, but no financial benefit to the worker directly. The voucher program is largely unused.

If someone were to add up the industry costs of vocational rehabilitation alone from its birth to its death, it would be a staggering amount of wasted money, spent mostly to appease the federal wonks who thought they knew what they are doing.

With this history in mind, the big question is “is the industry about to face another costly Nixon Commission redux?”

Another Major Hospital Chain Resolves Fraud Charges for $.5 Billion

A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals.

In addition, two Tenet subsidiaries have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Tenet subsidiaries Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.

These subsidiaries were charged in a criminal information filed in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.

And this is not the first offense! The criminal information also charges the subsidiaries with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.

Tenet HealthSystem Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.

In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.

As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.

There seems to be no end in sight to corruption and fraud perpetrated by major national providers.