When Aria Health bought 3B Orthopedics in December 2012 for $4.1 million, $3.5 million was allocated for the 3B trademark.
Two years later, Aria decided that it paid too much for the trademark.
That meant, according to a settlement announced Wednesday by the U.S. Attorney in Philadelphia, that Aria was overpaying the 3B physicians who left Pennsylvania Hospital for Aria, in violation of a federal law requiring physicians to be paid fair market value for their services.
Aria agreed to pay $2.5 million to settle alleged False Claims Act violations involving 3B and, separately, a thoracic surgeon whose $1.4 million annual compensation was found to be "outside fair market value," the U.S. Attorney's office said.
Aria also agreed to pay $564,000 to settle allegations that a cardiologist performed unnecesary surgeries at Aria's Torresdale campus between October 2012 and April 2013, when he was fired. Aria reported the matter to the U.S. Attorney about a year later.
"Through ongoing compliance review, Aria identified these matters and voluntarily reported them to the government," Aria said. Aria did not admit liability in the settlements.