October 30, 2009 / 8:29 PM / 10 years ago

Universal Health unit pays $27.5 mln to settle claims

WASHINGTON, Oct 30 (Reuters) - A subsidiary of Universal Health Services Inc (UHS.N) has agreed to pay $27.5 million to settle allegations that it paid illegal compensation to doctors to refer patients to hospitals within its group, the U.S. Justice Department said on Friday.

The unit, McAllen Hospitals LP, which does business as South Texas Health System, allegedly disguised the payments as sham contracts, including medical directorships and lease agreements, the government said. (Reporting by Jeremy Pelofsky, editing by Leslie Gevirtz)

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