Aria Health System settles over unnecessary invasive procedures and improper compensation claims

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Aria Health Systems, a major healthcare provider in Northeast Philadelphia and lower Bucks County, has settled two False Claims Act matters stemming from allegations that a cardiologist in their system performed unnecessary invasive procedures on patients and outpatients at its Torresdale facility.

The second matter involves alleged violations of the False Claims Act related to overcompensation of physicians and overpayment for a trademark name while the provider was in the process of acquiring an orthopedic group in December 2012, the U.S. Attorney's Office announced in a December 23 statement.

According to the U.S. Attorney's Eastern Pennsylvania District Office, Aria self-disclosed the violations, which allegedly took place during an overall two-year time period, from 2012 to 2014.

Aria got wind of complaints regarding a cardiologist in January 2013, and as such the company hired an "independent review organization" to flush out the issue and review the medical treatment rendered to some of the doctor's patients, according to authorities.

Subsequently, the cardiologist first agreed to stop performing the invasive procedures, and later terminated his employment with Aria as of April 15, 2013. Aria disclosed the issue in March of 2014, and has settled for $564,700 to resolve the issue legally, the U.S. Attorney's Office said.

Aria also self-disclosed to the Department of Justice the overcompensation of a cardiac thoracic surgeon surgeon "based on a concern that his $1.4 million annual compensation was outside fair market value." Under the False Claims Act and the Stark Act, physicians are to be paid salaries that do not exceed fair market value and are not allowed to include compensation for patient referrals.

Finally, Aria paid $3.5 million for the right to use a trademark name "in perpetuity" while it was in the process of acquiring an orthopedic group.

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"In November 2014, Aria voluntarily disclosed to the United States Attorney's Office for the Eastern District of Pennsylvania that its financial relationships with 3B Orthopedics P.C. and 3B Orthopedics of N.J. P.C. (collectively "3B") … may have violated the Anti-Kickback Statute," states the settlement agreement provided by the U.S. Attorney's Eastern Pennsylvania District Office.

After an internal investigation in 2014, Aria found the purchase price to be above fair market value and disclosed the matter to authorities, according to the U.S. Attorney's Office.

It should be noted that the settled civil claims were allegations only. 

Twitter: @BethJSanborn