SCCI Health Services Corp. and SCCI Hospital Ventures will pay $7.5 million to settle charges that they broke federal laws governing payments to physicians and physician self-referrals. The companies were purchased in 2005 by privately held Triumph HealthCare, Houston, which operates 21 long-term, acute-care hospitals in six states. According to a whistle-blower lawsuit filed in U.S. District Court in Houston, the SCCI companies made illegal payments to three physicians, disguising the payments through phony medical directorships, between 1996 and 1999. The doctors allegedly referred patients to SCCI facilities, although the doctors owned financial interests in dialysis centers, specialty hospital beds and other services at the facilities. The SCCI companies didnt admit wrongdoing in the settlement. Tanya Snodgrass, Triumphs vice president of professional relations, said, We are happy to have this behind us. -- by Mark Taylor
LTAC firms settle self-referral case
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