Under the terms of the settlement, Sanford will cooperate with the DOJ in litigation related to alleged co-defendants, and will take various remedial steps, including terminating the Asfora’s employment and prohibiting all Sanford physicians from profiting from their use of medical devices at Sanford.

The hospital system has also entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires it to maintain a compliance program, implement a risk assessment program, and hire an independent review organization to assess its Medicare and Medicaid Claims at Sanford Medical Center. Sanford Medical Center’s board of directors and key executives also must be able to provide compliance-related certifications to show increased individual accountability.

“Kickback schemes and other improper financial incentives create inherent conflicts of interest and warp the medical decision-making process,” said U.S. Attorney Ron Parsons for the District of South Dakota in a statement. “This office will continue to aggressively pursue anyone who colludes to violate federal law and compromise the integrity of our healthcare system.”

The investigation into the allegations against Sanford was conducted by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Dakota, and HHS-OIG. Bechtold and Wellman will receive $3.4 million of the proceeds from the settlement.

The claims resolved by the settlement are allegations only, with no liability determined.

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