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Physician-Hospital Marketing Agreements: Don’t Let Billboards and Brochures Land You in Hot Water

In two recent cases, hospitals that provided marketing services to physicians for less than fair market value faced allegations they had violated the False Claims Act, the Anti-Kickback Statute, and the Stark Law. In both situations, the hospitals settled with the government and ended up paying millions of dollars. In December 2017, Pine Medical Center in Dallas, Texas paid a $7.5 million settlement over allegations that it provided kickbacks to physicians in the form of free marketing services. Former members of the hospital’s marketing department claimed that the hospital paid to advertise physician practices in magazines and newspapers and on billboards, radio, and television. The hospita

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