Anti-Kickback and Stark

December 12, 2017

Florida-based 21st Century Oncology Inc. agreed to pay $26 million to settle charges of violating the False Claims Act and the Stark Law through the company’s false attestation to the use of electronic health records software and through referrals from physicians with whom the company had improper financial relationships. DOJ

December 12, 2017

Mobile imaging companies PDQ Imaging Services, LLC, PDQ Ultrasound Services, LLC, PDQ Mobile X-Ray Services, PDQ Mobile X-Ray, LLC, along with their owners Dennis Whitsell and Jonathan Graham Lane, agreed to pay $300,000 to settle charges of violating the False Claims Act and Anti-Kickback Statute by improperly billing Medicare for transportation charges related to portable x-ray services and paying kickbacks to skilled nursing facilities in exchange for patient referrals. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Kevin P. McDonough and Boyd K. Billington. They will receive a whistleblower award of roughly $60,000 from the proceeds of the government's recovery. DOJ (EDTX)

December 11, 2017

Yunesky Fornaris, the owner and operator of defunct Miami home health agency Elite Home Care, was sentenced to 115 months in prison and to pay $15.1 million in restitution for his role in a $15 million conspiracy to defraud the Medicare program through the enlisting of patient recruiters to recruit patients to Elite in exchange for illegal bribes and kickbacks. DOJ

December 1, 2017

Pine Creek Medical Center LLC, a physician-owned hospital serving the Dallas/Fort Worth area, agreed to pay $7.5 million to resolve claims it violated the False Claims Act and Anti-Kickback Statute by paying physicians kickbacks in the form of marketing services in exchange for surgical referrals.  Specifically, Pine Creek allegedly paid for advertisements on behalf of the physicians as well as radio and television advertising, pay-per-click advertising campaigns, billboards, website upgrades, brochures, and business cards, and other forms of marketing to induce physicians to refer patients to Pine Creek for medical services.  The allegations originated in a whistleblower lawsuit under the qui tam provisions of the False Claims Act by former Pine Creek employees Suzanne Scott and Savannah Sogar.  They will receive a whistleblower award of $1,125,000 from the proceeds of the government's recovery.  DOJ

November 17, 2017

Meadows Regional Medical Center, Inc. agreed to pay up to $12,875,000 to resolve allegations of violating the False Claims Act, Anti-Kickback Statute and Stark Law by submitting claims referred by physicians with whom Meadows had improper compensation arrangements.  DOJ (SDGA)

November 16, 2017

Four San Diego-area nursing homes owned by Los Angeles-based Brius Management Co. agreed to pay as much as $6.9 million to resolve allegations of violating the False Claims Act and Anti-Kickbacks Statute by paying kickbacks for patient referrals to discharge planners at Scripps Mercy Hospital San Diego.  The four nursing homes involved are Point Loma Convalescent Hospital, Brighton Place – San Diego, Brighton Place – Spring Valley, and Amaya Springs Health Care Center.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Viki Bell-Manako, a former employee of one of the Brius nursing homes.  She will receive a whistleblower award of 20% of the proceeds of the government's recovery.  DOJ (CDCA)