Baltimore, Maryland – Peninsula Regional Medical Center (“PRMC”) in Salisbury Maryland has agreed to pay $1.8 million to settle allegations under the False Claims Act that it was aware of, but failed to take action to prevent medically unnecessary cardiac stent procedures by John R. McLean, formerly a cardiologist with privileges at PRMC.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

The allegations resolved in the settlement include the failure of senior medical staff at PRMC to follow up on evidence presented to them through the complaints of staff in the cardiac catheterization laboratory about the medically unnecessary nature of the procedures that Dr. McLean was performing for Federal health care program beneficiaries.

Under the settlement the hospital also agreed to repay monies it received from federal health benefit programs between April 24, 2003 and December 4, 2006 for medically unnecessary stents performed by John R. McLean, M.D.

PRMC also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services, Office of Inspector General, which requires PRMC to ensure accurate billing. The CIA also requires the hospital to, among other things, appoint physician executives to oversee medical staff quality-of-care matters.

The settlement was the result of an investigation by the U.S. Attorney’s Office for the District of Maryland and the U.S. Department of Health and Human Services, Office of Inspector General. The case was handled by Assistant U.S. Attorney Allen F. Loucks and Auditor Mary Hammond.