The following statement can be found on the Office of Inspector General’s web page under the heading Kickback and Physician Self-Referral: 

“After it self-disclosed conduct to the OIG (Office of Inspector General), St. Catherine of Siena Medical Center (St. Catherine), New York agreed to pay $2,596,014 for allegedly violating the Civil Monetary Penalties Law provisions applicable to physician self-referrals and kickbacks.  The OIG alleged that St. Catherine contracted with a physician owned professional services company.  The company received remuneration that was not consistent with fair market value and received payments for services that were not performed under the contract.” 

A second Long Island hospital, Good Samaritan Hospital Medical Center in West Islip was assessed a $55, 018.50 fine. St. Catherine of Siena Medical Center and Good Samaritan Hospital Medical Center are affiliates of Catholic Health Services (CHS) of Long Island.  

CHS Vice President for Public & External Affairs, Chris Hendriks, released a statement earlier this week acknowledging the settlements agreed to by the two local hospitals.  The statement also provided information about the incidents.  “St. Catherine of Siena Medical Center of Smithtown, Good Samaritan Hospital Medical Center of West Islip and CHS settled with the Office of Inspector General of the U.S. Department of Health and Human Services.  These arrangements with physicians involved administrative duties and did not affect patients in any way.  Patients at all times received the full, complete and high quality care they have come to expect from CHS hospitals. “

St. Catherine Hospital’s penalty was the result of contracting with a physician group and compensating that group for services that were not provided.  According to Chris Hendriks, the settlement was the result of an internal investigation performed by CHS. “In keeping with our commitment to compliance and our institutional values, we promptly informed the appropriate federal and state regulators of the facts we found.” 

Ms. Hendriks ( in a phone conversation earlier today)  declined to name the physicians group and indicated that a financial agreement had been reached between the physician group and St. Catherine of Siena Hospital.   The terms of the agreement are not expected to be disclosed.  

Ms. Hendriks restated the Catholic Health Services commitment to excellent patient care and compliance with federal and state regulations.