By Dick Miller
WE.CONNECT.DOTS: The income disparity that holds the majority of citizens down while granting exalted status for the wealthy also reflects how justice is meted out.
West Penn Allegheny Health System (WPAHS) is paying $1.5 million so allegations it paid kickbacks to doctors in exchange for patient referrals disappear. Bribes usually land white-collar criminals in jail, but not this time, according to US Attorney for Western PA David Hickton.
According to an account in the Pittsburgh Tribune Review, the five hospital system “leased space to physicians at below-market rates to induce referrals of patients” to specialists connected to and/or health care services owned by WPAHS.
These practices mostly occurred between 2008 and 2012, before Highmark took control of WPAHS. They violate the Anti-Kickback Statute, similar to when contractors bribe public officials to get business.
The scheme also violates the Stark Law, which “forbids hospitals billing federally funded programs, such as Medicare and Medicaid, for medical services referred by physicians who have a financial relationship with the hospital.”
All of the above is according to Hickton who apparently plans to do nothing about it.
West Penn Allegheny voluntarily disclosed the situation in December 2012 according to the Tribune Review. The Inspector General of the Department of Health and Human Services apparently investigated the crimes.
Hickton said he filed no charges, making the $1.5 million payment a civil fine. Questions remain. Who proposed the non-criminal settlement process? Does the government plan to recover any Medicare or Medicaid fees paid under this illegal relationship?
Hickton, the top law enforcer in Western PA, continues to fraternize with doctors and hospital executives at Oakmont, the Duquesne Club or wherever people who never have to play by the same rules gather.
Critics believe trading financial incentives for hospital referrals takes away patient choice and could hurt patient safety. Thanks to Hickton, an Obama appointee who reports to US Attorney General Eric Holder, no one will know what impact these bribes had on patients.
The headline of the March 19 press release from the US Attorney’s office reads “. . . Settlement . . . Resolves . . . Allegations.” WPAHS “has agreed to pay . . . to settle False Claims Act allegations,” Hickton announced.
Unfortunately, this episode of preferential treatment does not set Hickton apart from others who have headed the Pittsburgh office.
Richard Thornburgh (1969-75) prosecuted Democrat politicians to build support for a PA governor campaign he won in 1978.
PA Governor Tom Corbett held the office 1989-93.
His hatchet girl, Linda L. Kelly, held the title for a year (97-98) and then again for five months in 2001. She later filled in for Corbett as state attorney-general when voters elected him governor in 2010.
Then there was politician Mary Beth Buchanan (2001-09) who failed to win a GOP primary for Congress despite an attempt to prosecute smut out of existence in the Pittsburgh area.
In 2012, the Pittsburgh Post-Gazette attempted to connect some dots. Their investigative reporters claimed UPMC paid outlandish prices for properties owned by physicians the hospital system wanted in the UPMC network.
One example involved purchases of parcels on the North Side of Pittsburgh by UPMC from noted neurosurgeon Joseph Maroon. Sean D. Hamill wrote in the Post-Gazette September 23, 2012, that UPMC bought a group of Maroon’s parcels for a million more than their worth. At the same time, UPMC announced Maroon was coming to work for the hospital.
Both Maroon and UPMC denied the two actions (both in 1999) were related.
Health care is a booming source of advertising income to hungry media. Stories such as these seldom see the light of day or get follow up action.
Bottom Line: West Penn Allegheny officials claim they are paying $1.5 million even though no one is guilty of any crime.
Apparently no executive of WPAHS ever benefited personally (promotion, pay raise, or?) because of negotiating these deals with doctors. Once again, no health care executives or doctors will go to jail.
