Medical company with 4 SA hospitals to pay $13M+ for kickback scheme

'Improper financial benefits could influence medical decision-making'

Google Map
Google Map

SAN ANTONIO – Post Acute Medical is paying more than $13 million as part of a settlement for improper physician relationships that aimed to maximize company profits at the expense of federal health care programs, according to the Department of Justice.

The DOJ announced last month that PAM had violated the False Claims Act "by knowingly submitting claims to the Medicare and Medicaid programs that resulted from violations of the Anti‑Kickback Statute and the Physician Self‑Referral Law."

The two laws are both meant to protect the interest of patients and ensure that medical decisions are not compromised by financial incentives.

PAM, founded in 2006, entered into numerous contracts with hospitals that "were intended to induce the physicians to refer patients to PAM’s facilities,” the DOJ claims.

“Kickbacks undermine the independence of physician and patient decision-making, and raise healthcare costs,” Chad A. Readler, head of the Justice Department’s Civil Division, said.

According to PAM’s website, the company has four operating branches in San Antonio. — seven if you include the surrounding areas.

Those facilities are:

Warm Springs Rehabilitation Hospital of Westover Hills
Warm Springs Rehabilitation Hospital of San Antonio
Warm Springs Rehabilitation Hospital of Thousand Oaks
PAM Specialty Hospital of San Antonio
PAM Specialty Hospital of New Braunfels
PAM Specialty Hospital of Luling
Warm Springs Rehabilitation Hospital of Kyle

Click here to see all PAM locations listed on the companies website.

“Medicare and Medicaid beneficiaries depend on their health care providers to make decisions based on sound medical judgment,” said U.S. Attorney David J. Freed. “Our office will take decisive action to address allegations that medical providers are paying or receiving improper financial benefits that could influence medical decision-making.”

PAM is expected to pay $114,016 to Texas, $22,482 to Louisiana and $13,031,502 to the federal government.

Douglas Johnson, the whistleblower who sued PAM, will receive $2.3 million of the government's payout from PAM.

For more information about this case, click here.

About the Author: