Issue link: https://beckershealthcare.uberflip.com/i/1293265
32 PRACTICE MANAGEMENT 5-physician practice joins Illinois Bone & Joint Institute By Alan Condon Chicago-based Northwest Orthopaedics & Sports Medicine joined Illinois Bone & Joint Institute July 1. Three things to know: 1. Northwest Orthopaedics & Sports Medicine brings five phy- sicians and a team of physical therapists to the Des Plaines- based practice. 2. The physician-owned group also merged with Bradley, Ill.- based Oak Orthopedics and Chicago Orthopaedics & Sports Medicine earlier this year. 3. Illinois Bone & Joint Institute has more than 100 physicians and is among the largest orthopedic groups in the state. n Beacon Orthopaedics & Sports Medicine acquires orthopedic group: 6 details By Laura Dyrda S haronville, Ohio-based Beacon Orthopaedics & Sports Medicine acquired a seven-physician orthopedic group based in Montgomery, Ohio, according to the Cincinnati Business Courier. Six details: 1. Beacon acquired Reconstructive Orthopaedics & Sports Med- icine on July 31 and agreed to retain its nearly 100 employees. The practice already has 550 employees and 27 physicians. Almost all Reconstructive Orthopaedics & Sports Medicine employees that were furloughed during the pandemic have re- turned, and Beacon rehired all 219 workers it furloughed earlier this year due to the pandemic. 2. The combined group includes 34 physicians as shareholders in the practice; Reconstructive Orthopaedics brought one employed physician and one physician on the partnership track to the group. 3. OrthoAlliance, a management services organization Beacon owns with private equity firm Revelstoke Capital Partners, bro- kered the deal. 4. Under the agreement, Reconstructive Orthopaedics & Sports Medicine transitioned to Beacon's IT systems, which include EHR, human resources and employee benefits. Reconstructive Orthopaedics & Sports Medicine also rebranded to Beacon Orthopaedics & Sports Medicine. 5. The acquisition will allow the newly joined physicians to op- erate at Beacon's two ASCs as well. 6. Terms of the agreement were not disclosed. n Feds, surgical groups reach $77.2M settlement over allegedly illegal referral arrangement By Angie Stewart O klahoma City-based Oklahoma Center for Or- thopaedic and Multi-Specialty Surgery agreed to resolve allegations that it made improper payments in exchange for patient referrals over a 12-year period, the Department of Justice announced July 8. e specialty hospital, along with its part-owner and manage- ment company USP OKC and USP OKC Manager, Oklaho- ma City-based Southwest Orthopaedic Specialists, and two SOS physicians, will pay $77.2 million to settle whistleblower claims that their relationships were improper. In violation of the False Claims Act and the Oklahoma Med- icaid False Claims Act, OCOM and USP allegedly induced referrals from SOS and certain SOS physicians by providing: • Office space, employees and supplies for free or below fair market value • Payment that exceeded fair market value for the services rendered • Equity buyback provisions and payments that exceeded fair market value • Preferential investment opportunities related to anes- thesia services at OCOM OCOM and USP made these improper payments to SOS and certain physicians between 2006 and 2018, resulting in the submission of false claims to Medicare, Medicaid and Tricare, the lawsuit alleges. Federal prosecutors also say USP gave preferential investment opportunities to physicians at four surgery facilities in Texas. To resolve the allegations, USP will pay $60.86 million to the federal government, $5 million to the state of Oklahoma, and $206,000 to the state of Texas. SOS and two of its physicians — Anthony Cruse, DO, and R.J. Langerman Jr., DO — will pay $5.7 million to the U.S., and $495,619 to Oklahoma. e whis- tleblower's share of the settlement hasn't yet been determined. OCOM and SOS also entered into five-year Corporate Integ- rity Agreements with the HHS Office of Inspector General, which require them each to maintain a compliance program, hire an Independent Review Organization to review arrange- ments, and uphold compliance-related certifications. e settlement is not a determination of liability, and the claims settled are allegations only. n