William Beaumont Hospital in Michigan has agreed to pay $1.732 million in a settlement with the HHS Office of Inspector General (OIG) that had a connection to its corporate integrity agreement (CIA). The allegations centered on the hospital’s physician compensation and leases under certain circumstances.

According to its civil monetary penalty settlement, which was obtained through the Freedom of Information Act, OIG alleged that William Beaumont Hospital paid physicians remuneration in two different forms: (1) excess compensation to 18 cardiologists in its cardiology reading program from Jan. 1, 2015, to Oct. 31, 2020, and (2) the free use of medical equipment and personnel by a medical group from Jan. 1, 2015, to Dec. 31, 2018. OIG alleged the hospital violated the civil monetary penalty law applicable to the Anti-Kickback Statute (AKS) and submitted Medicare claims for designated health services that resulted from prohibited referrals in violation of the Stark Law.

The settlement stems from William Beaumont Hospital’s self-disclosure to OIG’s Health Care Fraud Self-Disclosure Protocol (SDP). The hospital self-disclosed on June 21, 2021, and was accepted into the SDP the following month. “Also on June 21, 2021, Respondent disclosed this matter as a Reportable Event pursuant to its Corporate Integrity Agreement with OIG,” the settlement stated.