A large community hospital in the South Central U.S. engaged HealthWorks to assist with physician contracting. During the course of a multi-year relationship, HealthWorks prepared more than 30 fair market value (FMV) opinions and community need opinions, and advised the hospital in the development of physician service contracts.
Recently, following a confidential “whistleblower” complaint, the Office of Inspector General (OIG) conducted an exhaustive review of this hospital’s physician contracting practices--reviewing each hospital-physician agreement, FMV and community need opinion.
The result? The hospital was advised by the U.S. Attorney’s office that it was closing its investigation without further action, having found its practices to be in compliance with federal law. Moreover, in an unusual development, the U.S. Attorney’s office advised the relator (the party who filed the complaint) that he would have no grounds to proceed with a private federal lawsuit against the hospital. The relator filed a voluntary withdrawal of the complaint from federal court. A happy ending, to the considerable satisfaction of hospital leadership. And a testament to the expertise and methods of HealthWorks.
