FOR IMMEDIATE RELEASE CIV

TUESDAY, JULY 18, 2006 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Marion County Medical Center to Pay

U.S. $3.75 Million
to Resolve Kickback Allegations
WASHINGTON – Marion County Medical Center in Marion County, S.C. has
agreed to pay the United States $3.75 million to resolve allegations of health care
fraud against the government, the Justice Department announced today. The
settlement resolves allegations that Marion County Medical Center submitted false
claims to Medicare, Medicaid and TRICARE, the U.S. military’s health care
program, by engaging in financial relationships with certain physicians that were
prohibited under the Stark Law and/or the Anti-kickback Statute.

Specifically, the settlement focuses on the compensation Marion paid to two

physicians which the United States contends far exceeded the fair market value of
the services provided by those physicians and was not commercially reasonable. The
settlement also resolves allegations that Marion submitted claims to Medicare for
professional services for initial hospitalizations which were coded at a level higher
than the services that were provided.

"This settlement reflects the importance that the Department places on compliance
by all health care providers with the law, including those laws governing financial
relationships between hospitals and physicians,” said Peter D. Keisler, Assistant
Attorney General for the Department of Justice's Civil Division. “We will continue
to apply the False Claims Act to protect the federal healthcare programs against the
potential for fraud and abuse posed by such prohibited relationships."

The United States initiated the investigation in response to a whistleblower action

brought by Kenneth Orbeck, a former employee of Marion. Under the False Claims
Act, private individuals can bring whistleblower actions for fraud on behalf of the
United States and collect a share of any proceeds recovered by the suit and attorney
fees. Mr. Orbeck will receive $610,000 as his share of the settlement.

"We are pleased to have been able to resolve this matter,” said U.S. Attorney
Reginald I. Lloyd of the District of South Carolina. “ The government greatly
appreciates and applauds the conscientious efforts of whistleblowers like Dr. Orbeck
who bring issues of fraud and abuse to the attention of the government.”
The settlement is the culmination of a joint investigation involving agents, attorneys
and auditors from the United States Attorneys Office in Columbia, S.C.; the
Department of Justice; the Office of the Inspector General, Department of Health
and Human Services; the Federal Bureau of Investigation; and the Defense Criminal
Investigative Service.

The case is entitled United States ex rel Kenneth Orbeck v. Marion County Medical
Center; Case No. 3:04-22599-22 (D.S.C.).

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