Hospital kickback scandal raises big compliance questions for private healthcare leaders

A $31.5 million federal settlement with Fresno’s largest hospital group should send a sharp signal to private healthcare leaders everywhere — especially in the UK, where regulatory scrutiny is tightening. US authorities found Community Health System (CHS) and its tech affiliate rewarded physicians with luxury perks and financial incentives in exchange for patient referrals, breaching anti-kickback and self-referral laws.

While CHS denies liability, it has entered a five-year Corporate Integrity Agreement, with sweeping oversight requirements. Notably, whistleblower action triggered the case — and resulted in a $5 million payout.

For UK private healthcare executives, this case is a wake-up call. Any hint of incentive-based referral schemes could undermine trust, spark legal exposure, and bring reputational fallout. C-suite leaders should reassess compliance frameworks, especially in tech partnerships and provider compensation models.

Read the full article to see what lessons this US case holds for the UK private healthcare sector.