The former owner of Campus Hospital of Cleveland, a behavioral health facility, was sentenced to one year in prison and ordered to pay $600,000 in restitution for paying kickbacks for patient referrals from 1995 through 1998. Thomas Donaghy, 60, pleaded guilty earlier this year in Ohio federal court to participating in a conspiracy to pay $600,000 in “referral fees” to “patient recruiters” for referring out-of-state Medicare patients to Campus for substance-abuse treatment. Three other defendants, including the hospital’s former COO, also pleaded guilty to the scheme and were sentenced in March. The hospital paid in the range of $600 to $1,000 per referral and received $3,500 by Medicare for each case. Former COO John Sajan was ordered to serve four months in prison followed by home detention and must pay $600,000 in restitution. Also sentenced was Cardwell Nuckols, a nationally known lecturer and author of 14 books on substance-abuse treatment who pleaded guilty in the case in March. Nuckols, who owned a healthcare management company that received fees for referrals, was sentenced to four months’ home confinement and $30,000 in restitution.
Kickback scheme lands ex-hospital owner in prison
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.