Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Patient referrals are the lifeblood of hospitals. Photo: Andrew Lichtenstein/Corbis via Getty Images
New lawsuits allege that large hospital systems have illegally billed federal health care programs after making improper financial deals with doctors as a way to control where patients get care.
Why it matters: Hospitals that own physician practices capture more referrals and therefore more money than their competitors — but potentially skirt federal law and inflate the cost of care for everyone in the process.
Driving the news: The former CFO of Community Health Network, a hospital system in Indiana, alleged the system employed physicians with "excessive" salaries well above fair market rates as a way to secure those physicians' referrals, and then bill higher rates for hospital services.
- The Justice Department intervened in the case, which often means the feds believe the case has merit. CHN released a statement saying this was a "waste of the government's time and resources to pursue these meritless claims."
- Read the full complaint.
Separately, an orthopedic surgeon in Florida alleged in a newly unsealed whistleblower case that Orlando Health pressured doctors to conduct surgeries and imaging tests only at facilities owned by Orlando Health. He says he was fired because he was still seeing patients at competing hospitals.
- The Justice Department declined to intervene in the case for now. Orlando Health said it does not comment on pending litigation.
- Read the full complaint.
Go deeper: "The hidden system that explains how your doctor makes referrals," via the Wall Street Journal.