Issue link: https://beckershealthcare.uberflip.com/i/182667
Legal & Regulatory Issues 67 Sacred Heart Hospital Paid $5.5M to Companies Owned by Former CEO By Molly Gamble T Transfers were made to three companies headed by Mr. Novak: Bentley Management Group LLC, West Side Management Corp. and family medicine clinic Chen Medical Center. The payments were disclosed in for-profit Sacred Heart's bankruptcy filings, which do not state a reason for the transfers to Mr. Novak's companies but categorize them "as not in the ordinary course of the business," according to the report. A lawyer cited in the report who is not representing Sacred Heart but specializes in bankruptcy said the transfers may have been legitimate, but do raise questions. If the payments are identified as fraudulent conveyances, or transfers meant to avoid paying creditors, they could be clawed back. he troubled Sacred Heart Hospital in Chicago paid at least $5.5 million to companies controlled by its former owner and CEO, Edward Novak, who was arrested by the FBI in April, according to a Crain's Chicago Business report. Hospital of the University of Pennsylvania Must Refund $538k By Bob Herman F rom 2008 to 2011, the Hospital of the University of Pennsylvania in Philadelphia received almost $538,000 in Medicare overpayments due to incorrectly billed inpatient and outpatient claims, according to a report from the HHS Office of Inspector General. Sacred Heart closed July 1 and filed for protection from creditors July 2. In April, federal authorities arrested Mr. Novak, CFO Roy Payawal and four physicians. The alleged scheme involved physicians receiving more than $225,000 in cash and other forms of payment for referring Medicare and Medicaid patients to the 119-bed hospital. n Northwestern University to Pay $2.9M to Settle False Claims Act Allegations Over Cancer Research Funds By Helen Gregg N orthwestern University in Evanston, Ill., has agreed to pay a settlement of $2.9 million to be released from False Claims Act allegations over the use of cancer research grant funds, according to a Lexology report. A little more than half of the overpayments to the 784-bed HUP, which is one of the primary teaching hospitals within the University of Pennsylvania Health System, occurred on the inpatient side. The suit claimed Northwestern and some of the university's researchers submitted improper claims involving the use of National Institutes of Health grants and other federal grant funds that did not meet government guidelines, according to the report. OIG officials said HUP must refund the money to its Medicare contractor. Hospital officials agreed with the OIG's findings and said it will improve its Medicare billing compliance. n The suit was instigated by whistle-blower Melissa Theis, a former purchasing coordinator in hematology and oncology at Northwestern School of Medicine, according to the report. Northwestern did not admit liability in the settlement. n Subscribe Today! Becker's Hospital Review CEO Report E-Weekly Guidance, analysis and best practice information on hospital leadership, operations and management issues for top hospital and health system executives Each E-Weekly, sent every Tuesday, contains the most popular feature articles covering business and legal issues, CEO profiles and benchmarking and statistical data to immediately inform your decision-making To subscribe to the FREE E-Weekly, visit www.BeckersHospitalReview.com and click on the "E-Weekly" tab or call (800) 417-2035