Trinity Hospital Holding Company has agreed to pay $1.7 million to settle allegations tied to improper financial relationships with two referring physicians, according to the U.S. Department of Justice.

The Steubenville, Ohio-based hospital operator disclosed the arrangements following an internal compliance review and independent investigation. Federal authorities alleged that between 2014 and 2020, Trinity entered into office space rental agreements with two physicians that exceeded fair market value, raising concerns under the Physician Self-Referral Law, commonly known as the Stark Law.

The Stark Law restricts hospitals from billing Medicare and Medicaid for certain services referred by physicians with whom they have financial relationships, unless specific exceptions are met. Regulators contended that the rental arrangements fell outside those exceptions.
“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.”

Federal officials noted that Trinity received cooperation credit for voluntarily disclosing the conduct, taking corrective action, and assisting investigators. The case involved coordination between the Justice Department’s Civil Division and the Department of Health and Human Services Office of Inspector General.

The settlement resolves allegations only, and no determination of liability has been made. Authorities said the case underscores continued enforcement of fraud and abuse laws, including the False Claims Act, across the healthcare sector.

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