Trinity Hospital pays $1.7M Stark Law settlement
Summary
The DOJ announced Trinity Hospital agreed to pay $1.7 million to resolve alleged violations of the Physician Self-Referral Law (Stark Law). The settlement resolves allegations that improper rental arrangements with two referring physicians exceeded fair market value between 2014 and 2020. The government credited Trinity for self-disclosure, cooperation, and remedial action.
What changed
The DOJ Civil Division settled with Trinity Hospital regarding Stark Law violations. The $1.7 million settlement resolves allegations that from 2014 through 2020, Trinity made improper financial contributions to two referring physicians through rental arrangements for office space that exceeded fair market value. The Stark Law prohibits hospitals from billing for services referred by physicians with whom the hospital has a financial relationship unless one of the statutory exceptions applies.
Healthcare providers should review financial arrangements with referring physicians to ensure they satisfy Stark Law exceptions, particularly fair market value requirements. The government gave Trinity credit for conducting an internal compliance review, promptly taking remedial action, disclosing the arrangements to the government, and cooperating with the investigation. Organizations should assess whether existing physician financial relationships comply with Stark Law and consider voluntary disclosure if violations are identified.
What to do next
- Audit financial arrangements with referring physicians for fair market value compliance
- Review rental agreements and compensation arrangements with physicians to ensure Stark Law exceptions are satisfied
- Consider voluntary disclosure if self-review identifies potential Stark Law violations
Penalties
$1.7 million settlement
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Trinity Hospital Agrees to Pay $1.7M to Resolve Alleged Stark Law Violations
Thursday, April 2, 2026
Share For Immediate Release Office of Public Affairs Trinity Hospital Holding Company (Trinity) has agreed to pay the United States $1.7 million to resolve allegations relating to improper financial relationships between Trinity and two referring physicians. Trinity operates a hospital located in Steubenville, Ohio. Trinity disclosed the arrangements at issue to the government following an independent investigation.
The Physician Self-Referral Law, commonly known as the Stark Law, prohibits hospitals from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The settlement resolves allegations that from 2014 through 2020 Trinity made improper financial contributions to two referring physicians in the form of rental arrangements for office space. The United States alleged that these arrangements violated the Stark Law because the rental arrangements exceeded fair market value.
“The Stark Law is designed to ensure that decisions about patient care are not influenced by physicians’ personal financial interest,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “As this settlement reflects, we will hold accountable those who violate these important safeguards, but we will also give credit when resolving such misconduct to those who fully disclose their mistakes, take appropriate remedial actions, and meaningfully cooperate with the government’s investigation.”
In connection with the settlement, the United States acknowledged that Trinity took significant steps entitling it to credit for cooperating with the government. Following an internal compliance review and independent investigation, Trinity promptly took remedial action, disclosed the relevant arrangements to the government, and cooperated with the government’s investigation.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section Senior Trial Counsel David Finkelstein.
The claims resolved by the United States in the settlement are allegations only and there has been no determination of liability.
Updated April 2, 2026 Component Civil Division Press Release Number: 26-318
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