ARTICLE
11 April 2018

Oncology Company To Pay Up To $11.5 Million To Settle Kickback Allegations

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Day Pitney LLP is a full-service law firm with more than 300 attorneys in Boston, Connecticut, Florida, New Jersey, New York and Washington, DC. The firm offers clients strong corporate and litigation practices, with experience on behalf of large national and international corporations as well as emerging and middle-market companies. With one of the largest individual clients practices on the East Coast, the firm also has extensive experience assisting individuals and their families, fiduciaries and tax-exempt entities plan for the future.
SightLine Health, LLC, a Texas-based radiation therapy company, has agreed to pay the federal government up to $11.5 million to resolve allegations that the company paid referring physicians kickbacks in the form of investment opportunities and ownership dividends.
United States Food, Drugs, Healthcare, Life Sciences
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SightLine Health, LLC, a Texas-based radiation therapy company, has agreed to pay the federal government up to $11.5 million to resolve allegations that the company paid referring physicians kickbacks in the form of investment opportunities and ownership dividends. Integrated Oncology Network Holdings ("ION"), which acquired SightLine as part of a strategic investment in 2011, and other SightLine subsidiaries were also implicated in the settlement.

The settlement ends an investigation into allegations that SightLine invited referring physicians to invest in a series of leasing companies and then distributed profits, which were generated by physician investors referring patients to the facilities, back to the physician investors. The government alleged that the distributions compensated physicians for their referrals, in violation of the federal Anti-Kickback Statute, and that as a result, the resulting claims submitted to federally funded programs were subject to liability under the False Claims Act.

In a press release, U.S Attorney Erin Nealy Cox affirmed the government's commitment to eliminating complex business ventures that improperly interpose financial considerations into a physician's medical judgment. ION, SightLine, and SightLine's related subsidiaries have entered into a five-year Corporate Integrity Agreement as part of the settlement.

The allegations resolved by the settlement were initially brought in a qui tam action and the whistleblower will receive up to $1.725 million.


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ARTICLE
11 April 2018

Oncology Company To Pay Up To $11.5 Million To Settle Kickback Allegations

United States Food, Drugs, Healthcare, Life Sciences

Contributor

Day Pitney LLP logo
Day Pitney LLP is a full-service law firm with more than 300 attorneys in Boston, Connecticut, Florida, New Jersey, New York and Washington, DC. The firm offers clients strong corporate and litigation practices, with experience on behalf of large national and international corporations as well as emerging and middle-market companies. With one of the largest individual clients practices on the East Coast, the firm also has extensive experience assisting individuals and their families, fiduciaries and tax-exempt entities plan for the future.
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