Catskill Regional Medical Center paid $52,000 per month in illegal kickbacks to an unnamed entity for sham administrative services. Catskill received millions of dollars for treating these illegally referred alcohol and substance abuse inpatients.
The scheme operated from 1997 to 2000 according to the civil complaint and settlement agreement.
The suit was filed by a whistleblower who brought a qui tam suit under the federal False Claims Act.
PR Newswire reported on the settlement on January 7, 2005.