WHEELING, W.Va. (AP) -- Federal prosecutors say Ohio Valley Medical Center, East Ohio Regional Hospital and their parent corporation will pay $3.8 million to settle allegations of health care fraud.
U.S. Attorney William Ihlenfeld said Monday the deal ends an investigation into claims of false Medicaid and Medicare claims between 2005 and 2010.
Both hospitals are owned by Ohio Valley Health Education & Services Corporation.
OVMC is in Wheeling, and East Ohio is in Martins Ferry, Ohio.
Ihlenfeld says the penalty is severe because the compensation agreements the hospitals had with local physicians were improper and involved significant amounts of money.
He says prosecutors will now go after the doctors, demanding they return the prohibited payments.
Ohio Valley says it reported the problems on its own and has not only corrected them.