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 with the Justice Department resolves allegations that from 2014 through 2020 that Trinity made improper financial contributions to two referring physicians in the form of rental arrangements for office space. The DOJ alleged that these arrangements violated the Stark Law because the rental arrangements exceeded fair market value.

In connection with the settlement, the DOJ said that Trinity took significant steps entitling it to credit for cooperating with the government. Following an internal compliance review and independent investigation, the DOJ said that the health care company promptly took remedial action, disclosed the relevant arrangements to the government, and cooperated with the government’s investigation.