Attorney General James Secures Over $616,000 from New York-Presbyterian Hudson Valley Hospital for Illegal Kickback Scheme

NEW YORK – New York Attorney General Letitia James today secured over $616,000 from New York-Presbyterian Hudson Valley Hospital (HVH) for violating the law by making illegal kickback payments to a Westchester County oncology practice in exchange for its doctors allegedly referring approximately 114 patients to the hospital. A joint investigation between the Office of the Attorney General’s (OAG) Medicaid Fraud Control Unit (MFCU) and the United States Attorney’s Office for the Southern District of New York (SDNY) revealed that from January 2011 through December 2019, HVH and its predecessor, Hudson Valley Hospital Center, paid millions of dollars to the oncology practice, which then referred its patients for oncology services at the hospitals. Under a settlement with OAG and SDNY, HVH will pay over $616,000 in damages for false claims to New York’s Medicaid program.

“New Yorkers should be able to trust that their doctors are making decisions based on their best interests, not financial incentives,” said Attorney General James. “HVH’s illegal kickback scheme undermined cancer patients’ critical relationships with their health care providers. I will continue to go after illegal financial schemes that corrupt our health care system and prevent patients from getting the care they deserve.” 

The investigation found that from January 2011 through December 2019, HVH and Hudson Valley Hospital Center offered and paid the oncology practice over four million dollars in fees. These fees were paid in connection with three agreements – including for work that was either not performed, not performed as called for in the agreements, or for which HVH lacks any time records – to induce the oncology practice to refer its patients to Hudson Valley and HVH for oncology-related medical services. As a result of this scheme, HVH submitted false claims to Medicaid in violation of the New York State False Claims Act.

Under the settlement, HVH will pay $616,676.14, representing damages to Medicaid, with over $367,000 going directly to New York’s Medicaid program. The remainder will be returned to the federal government. The case against HVH was initiated by a former employee, who will receive a portion of the settlement because the former employee filed a whistleblower lawsuit under the federal and New York False Claims Acts, which allow people to file civil actions under seal on behalf of the government and share in any recovery.

The investigation and settlements were the result of a coordinated effort between OAG and SDNY. Attorney General James thanks SDNY for their partnership and assistance.

The investigation was conducted by Deputy Regional Chief Auditor Matthew Tandle, under the supervision of Chief Auditor Dejan Budimir, and former Special Assistant Attorney General Jared Goldman of the Civil Enforcement Division, under the supervision of Deputy Chief Diana Elkind. The Civil Enforcement Division is led by Chief Alee Scott. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division for Criminal Justice is led by Chief Deputy Attorney General José Maldonado and overseen by First Deputy Attorney General Jennifer Levy.

Reporting Medicaid Provider Fraud: MFCU defends the public by addressing Medicaid provider fraud and protecting nursing home residents from abuse and neglect. If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call MFCU at (212) 417-5397. If the situation is an emergency, please call 911.

New York MFCU’s total funding for federal fiscal year (FY) 2026 is $70,793,651. Of that total, 75 percent, or $53,095,240, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $17,698,411 for FY 2026, is funded by New York State.