A Phoenix hospital has agreed to pay several million dollars to resolve federal allegations that it participated in an illegal kickback scheme involving patient referrals, according to the U.S. Department of Justice.

Federal investigators said the hospital allegedly provided improper financial incentives to physicians in exchange for directing patients to its facilities. Such arrangements violate the federal Anti‑Kickback Statute, which prohibits offering or receiving anything of value to generate referrals for services covered by Medicare, Medicaid, or other federal health programs.

Prosecutors said the settlement does not require the hospital to admit wrongdoing, but it does resolve the government’s civil claims and avoids further litigation. Officials emphasized that kickback schemes can compromise patient care by steering medical decisions toward financial gain rather than clinical need.

The hospital issued a statement saying it cooperated fully with the investigation and is committed to compliance and transparency moving forward.

Federal authorities noted that the case underscores ongoing efforts to enforce fraud and abuse laws designed to protect patients and safeguard taxpayer-funded health programs.