Mercy Medical Center in Cedar Rapids, Iowa, has agreed to pay $14.8 million to resolve allegations it violated the Civil Monetary Penalties Law, according to the HHS Office of Inspector General.
The OIG claimed the hospital provided improper financial benefits to an investment company with ownership in an ASC and its physician owners. The arrangement involved unpaid fees and expenses, as well as distributions that should not have been made under the center’s operating agreement, the OIG said.
The hospital self-disclosed the conduct to the OIG, according to the agency.
In a statement shared with Becker’s, Mercy said it identified the issue internally, conducted a review and reported it to the OIG. The hospital said it has since made changes to ensure compliance and that the matter is now closed.
Mercy also said the settlement payment will not affect patient care, staffing or day-to-day operations.
HHS told Becker’s it does not comment on litigation as a ruling has been issued.
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