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NORTH AmERIcAN Newsline JULY 23, 2021 | The Indian Eye 25

indian-american doctors to pay usD 37.5 million

to settle allegations of kickbacks in us

Our Bureau was substantially negotiated kickbacks paid by Prime to Dr the Justice Department’s Civil

Washington, DC by Prime Healthcare Services Arunasalam for patient referrals, Division said, “Offering illegal
founder and CEO Dr Prem a media release said on Tuesday. financial incentives to physi-
wo Indian-American doc- Reddy, exceeded the fair mar- cians in return for patient refer-
tors and one of the largest ket value and was not commer- under the settlement agree- rals undermines the integrity of
Thospital systems in the US cially reasonable, it said. our healthcare system by deny-
have agreed to pay nearly USD Prime also knowingly over- ment, Dr arunasalam will pay ing patients the independent
37.5 million to settle allegations compensated the doctor when usD 2 million, Dr reddy paid and objective judgement of
of kickbacks for patient referrals, HDHVI entered into an em- usD 1.7 million and prime their health care professionals.”
the Department of Justice said. ployment agreement with him “Doctors have a sworn duty
The settlement resolves alle- that was based on the volume paid usD 33.7 million. prime to do no harm and to put their
gations that Prime Healthcare and value of his patient referrals and Dr reddy paid usD 65 mil- patients’ interests first,” said
Services system overpaid for to the Desert Valley Hospital. Acting US Attorney Tracy L
California interventional cardi- The United States and Cal- lion to settle previous unrelat- Wilkison for the Central District
ologist Dr Siva Arunasalam’s ifornia entered into a settle- ed allegations of false claims of California.
physician practice and surgery ment agreement with the Prime and overbilling in 2018, the “Kickbacks designed to in-
centre because the company Healthcare Services, Dr Reddy, crease the number of patient
wanted him to refer patients and Dr Arunasalam to resolve Department of Justice said. referrals corrupt the doctor-pa-
to its Desert Valley Hospital in alleged violations of the False tient relationship and needless-
Victorville, California, it said. Claims Act and the Califor- Acting Assistant Attorney ly waste this nation’s healthcare
The purchase price, which nia False Claims Act based on General Brian M Boynton of resources,” he said.

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