Hospital to pay $7.5 million to settle kickback allegations - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com |

Hospital to pay $7.5 million to settle kickback allegations

DALLAS (AP) - A North Texas physician-owned hospital has agreed to pay $7.5 million to settle claims that it paid in the form of marketing services in return for surgical referrals.

The Justice Department said in a Friday statement that Pine Creek Medical Center engaged in a kickback scheme between 2009 and 2014. As part of its settlement agreement, Pine Creek has agreed to a corporate integrity agreement that requires internal compliance measures for the next five years.

The settlement resolves a whistleblower lawsuit and will pay two former Pine Creek marketing employees $1.125 million.

A call to the Pine Creek Medical Center administrator was met with a full voicemail box.

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