Los Angeles’ Kerlan Jobe Orthopaedic Clinic Pays $3 Million to Settle Kickback Allegations

December 22nd, 2009 by Qui Tam

An orthopaedic sports medicine clinic in Los Angeles, California, has agreed to pay $3 million to the United States government to settle allegations that it received illegal kickbacks from HealthSouth Corporation.  The Kerlan Jobe Orthopaedic Clinic, a prominent practice whose patients have included numerous pro athletes, allegedly received kickbacks from HealthSouth Corporation in the form of loan forgiveness, stock option grants, charitable donations, and ownership interest in an ambulatory surgery center, in exchange for referring its patients to HealthSouth facilities for medical care.

As part of the settlement, Kerlan Jobe must enter into a Corporate Integrity Agreement with the Office of Inspector General, Department of Health and Human Services. 

The Department of Justice’s press release can be found at:  http://www.justice.gov/opa/pr/2009/December/09-civ-1294.html

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