Cooper Health System pays $12.5M to settle kickback charges

     Camden-based Cooper Health System will pay $12.5 million to settle federal and state kickback allegations.

    Authorities had alleged the hospital violated the False Claims Act by making improper payments to physicians under so-called “consulting” and “compensation” agreements while it was building its cardiology program.


    U.S. Attorney Paul Fishman says such payments require heightened scrutiny because they may be improper if they are based on patient referrals.

    • WHYY thanks our sponsors — become a WHYY sponsor

    Authorities alleged Cooper recruited and paid physicians to serve on its heart institute advisory board from 2004 through 2010. Prosecutors claimed the payments were made to induce doctors to refer patients to Cooper.

    Cooper President and CEO John Sheridan Jr. released a statement saying the hospital decided to settle the dispute without admitting any wrongdoing to avoid potential costs of a drawn-out lawsuit.

    WHYY is your source for fact-based, in-depth journalism and information. As a nonprofit organization, we rely on financial support from readers like you. Please give today.

    Want a digest of WHYY’s programs, events & stories? Sign up for our weekly newsletter.

    Together we can reach 100% of WHYY’s fiscal year goal