DOJ Continues to Scrutinize Medical Director Arrangements

On Jan. 16, 2026, the U.S. Department of Justice (DOJ) chose to intervene in False Claims Act litigation brought against Priority Hospital Group, three of its long-term care hospitals, and a physician, alleging violations of the Anti-Kickback Statute (AKS) and Stark Law related to medical director arrangements, among other things. This enforcement action serves as a reminder of the federal government’s continued focus on physician compensation arrangements that may disguise improper referral incentives.