St. James Healthcare to Pay $3.85 Million in Settlement - ABC FOX MONTANA NEWS, WEATHER, SPORTS - KTMF/KWYB

St. James Healthcare to Pay $3.85 Million in Settlement

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BUTTE -

As part of a settlement with the U.S. Department of Justice, St. James healthcare in Butte is going to pay $3.85 million for improper use of finances.

According to St. James Healthcare, in 2009 the hospital conducted an internal review that found discrepancies in a 2005 partnership between a group of physicians and St. James.

As a result, the hospital hired a third party to conduct an independent investigation.

That investigation found St. James was improperly providing funds for physicians who made referrals to the hospital violating the Anti-Kickback Statute, the Stark Law, and the False Claims Act.

According to the Department of Justice, in return for the referrals the hospital gave the physicians improper financial aid for a joint venture health care program and building, located on the hospital's campus.

The hospital then settled with the Justice Department, paying $3.85 million.

A statement from St. James says the hospital is implementing new strict procedures to avoid situations like this in the future.

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