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May 8, 2006
OIG Notifies Tenet of Potential Exclusion of
Alvarado Hospital
The Office of the Inspector General (OIG) alleges that from 1992, to
2003, Alvarado Hospital entered into physician relocation agreements through
which Alvarado funneled money to existing physician practices in the
San Diego area in exchange for patient referrals. Although the
relocation agreements were purported to benefit the doctor who
actually relocated to the San Diego area, in practice, the
agreements primarily benefited the established physician practices
where the new doctors were placed. OIG contends these
often-excessive payments actually were used to buy referrals. The
agreements typically provided the new physician a monthly salary and
a monthly guarantee for overhead expenses.
Excerpt

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