The Peninsula Regional Medical Center in Salisbury Maryland has agreed to pay 1.8 million dollars to settle allegations brought against the hospital under the False Claims Act. The Department of Justice accused the medical center of failing to take action against John R. McLean, former cardiologist with privileges at PRMC, when he performed medically unnecessary cardiac stent procedures.
Under the terms of the settlement, the hospital has agreed to repay the money it received from federal health benefit programs between April 24, 2003 and December 4, 2006 for the medically unnecessary stents Dr. McLean performed. Additionally, PRMC has entered into a Corporate Integrity Agreement with the Department of Health and Human Services. Under this agreement, PRMC is required to ensure accurate billing and to appoint executive physicians to oversee medical staff quality of care matters. The hospital admits no liability under the settlement.
Dr. McLean was convicted in July 2011 of six health care fraud offenses in connection with inserting unnecessary heart stents. Dr. McLean falsified patient records, performed unnecessary operations, and billed private and public insurers for these procedures. He faces a maximum of 35 years in prison. Dr. McLean is scheduled to be sentenced on November 10, 2011.