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How Copayment Waivers can Give Rise to a Whistleblower Claim

Posted  06/8/18
Kickbacks in healthcare What’s not to like about a doctor waiving a patient’s copayment, or a pharmaceutical company offering a prescription drug assistance program? Turns out there are plenty of reasons to be concerned about such activities. And, as a recently announced $24 million settlement with Pfizer illustrates, unlawful patient cost waivers can result in big liability for defendants. Patient cost-sharing is a core principle...

US Obtains $114M FCA Judgement in Kickbacks Case

Posted  05/31/18
On May 23, the US District Court in South Carolina issued judgment for the US for roughly $114M against three individuals, LaTonya Mallory, Floyd Dent III, and Robert Johnson, for violating the FCA by paying kickbacks to doctors in exchange for patient referrals. The defendants also caused two labs to bill Medicare, TRICARE, and Medicaid for medically unnecessary tests. The judgment follows a January jury verdict that...

Pfizer Agrees to Pay $23.85 Million to Resolve False Claims Act Liability for Paying Kickbacks

Posted  05/24/18
The Department of Justice today announced that Pfizer agreed to pay $23.85 million to resolve allegations that it used a foundation as a conduit to pay the copays of Medicare patients taking three Pfizer drugs. Medicare Part B or D beneficiaries typically make a partial payment when obtaining prescription drugs in the form of a copay, coinsurance, or deductible. Under the Anti-Kickback Statute, pharmaceutical...

Michigan Home Health Agency Owner Pleads Guilty to Health Care Fraud Charges

Posted  05/18/18
The owner of a Michigan home health agency pleaded guilty to fraud charges for his role in a scheme involving approximately $8 million in fraudulent Medicare claims for home health services that were procured through the payment of illegal kickbacks. Zahir Shah, 48, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and...

Tennessee Health Care Executives Charged in Kickback Scheme

Posted  04/10/18
By the C|C Whistleblower Lawyer Team The DOJ charged two Tennessee health care executives, John Davis and Brenda Montgomery, for their alleged participation in a $4.6 million Medicare kickback scheme involving durable medical equipment.  Davis is the former CEO of pain management company Comprehensive Pain Specialists (CPS).  Montgomery is the owner of medical equipment company CCC Medical Inc.  See DOJ Press...

Orthopedic and Anesthesia Providers to Pay $3.2 million to Settle False Claim Act Allegations

Posted  04/6/18
By the C|C Whistleblower Lawyer Team Georgia Bone & Joint, Summit Surgery Center, Southern Crescent Anesthesiology, Sentry Anesthesia Management, and David LaGuardia agreed to pay $3.2 million to settle allegations that LaGuardia, Sentry, and SCA provided a free medical director to Summit Surgery Center in order to induce it to choose to perform more procedures at the surgery center rather than in the GBJ office. GBJ...

Radiation Therapy Company Agrees to Pay Up to $11.5 Million to Settle Allegations of False Claims and Kickbacks

Posted  04/2/18
By the C|C Whistleblower Lawyer Team The DOJ announced a settlement with Texas-based radiation therapy center SightLine Health LLC (“SightLine”) and Oncology Network Holdings LLC, which acquired SightLine in 2011, for $11.5 million to settle allegations in a False Claims Act complaint that Sightline submitted Medicare claims that violated the Anti-Kickback Statute.  According to DOJ, the allegations centered on...

Abiomed, Inc. Agrees to Pay $3.1 Million to Resolve Kickback Allegations

Posted  03/9/18
By the C|C Whistleblower Lawyer Team The Justice Department announced that Abiomed, Inc. agreed to pay $3.1 million to resolve allegations it violated the False Claims Act by purchasing extravagant meals for physicians to induce them to use Abiomed’s Impella line of heart pumps. “We expect today’s settlement with Abiomed to serve as a warning to medical device manufacturers who try to improperly influence the...

Pennsylvania Hospital and Cardiology Group Settle FCA Suit for Over $20M

Posted  03/8/18
By the C|C Whistleblower Lawyer Team UPMC Hamot and Medicor Associates, a hospital and a cardiology group located in Erie, Pennsylvania, have settled allegations that they violated the Anti-Kickback Statute and the Stark Law, also known as the Physician Self-Referral Law. Generally speaking, the Anti-Kickback Statute prohibit hospitals, physicians, pharmacies, nursing homes, durable medical equipment (DME) companies,...

Fraudster of the Week -- Pharmacy Fraudster Steven Butcher

Posted  02/16/18
By the C|C Whistleblower Lawyer Team On Wednesday, former pharmaceutical sales representative Steven Butcher admitted to running a $45 million scheme to swindle both federally-funded and private health care benefit programs.  Butcher was charged with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the Anti-Kickback Statute, a law designed to remove financial incentives...
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