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Anti-Kickback and Stark

This archive displays posts tagged as relevant to the Anti-Kickback Statute and Stark Law.

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Page 45 of 60

December 15, 2016

New York City-based Forest Laboratories LLC and its subsidiary Forest Pharmaceuticals Inc. agreed to pay $38 million to resolve allegations they violated the False Claims Act and Anti-Kickback Statute by paying kickbacks to induce physicians to prescribe the drugs Bystolic, Savella and Namenda.  According to the government, Forest provided payments and meals to certain physicians in connection with speaker programs about the drugs as improper inducements to prescribe them.  The allegations originated in a whistleblower lawsuit filed by former Forest employee Kurt Kroening under the qui tam provisions of the False Claims Act.  He will receive a whistleblower award of approximately $7.8 million from the proceeds of the government’s recovery.  Whistleblower Insider

December 2, 2016

Vitas Health Corporation Midwest and related entities agreed to pay $200,000 to resolve allegations that they violated the False Claims Act and the Anti-Kickback Statute by paying Dr. Farid Fata for patient referrals to its hospice care services.  In an earlier unrelated criminal matter, Fata pleaded guilty to health care fraud, conspiracy to pay and receive kickbacks and promotional money laundering, and was sentenced to a term of 45 years in prison.  The allegations originated in a whistleblower lawsuit under the qui tam provisions of the False Claims Act by Rita Dubois who worked at Vitas as the Director of Market Development in Southeastern Michigan.  Dubois will receive a whistleblower award of $36,000 from the proceeds of the government's recovery.  DOJ (EDMI)

November 15, 2016

New Jersey-based remote cardiac monitoring company MedNet Inc., and a subsidiary of BioTelemetry Inc., agreed to pay more than $1.35 million to resolve allegations that it paid kickbacks to induce physicians to use the company’s cardiac monitoring services.  According to the government, from March 2006 through January 2014, before BioTelemetry acquired MedNet, MedNet entered into “fee-for-service” or “direct-bill” agreements with certain hospital and physician clinic customers which allowed them to bill Medicare directly for these same services and retain the reimbursements they received which exceeded the fees that MedNet charged them.  The government alleged that the remuneration MedNet provided in connection with the agreements was illegal remuneration under the Anti-Kickback Statute.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  DOJ (DNJ)

U.S. Health and Human Services Office of the Inspector General Advisory Opinion: Free Lab Labeling Services May Violate Anti-Kickback Statute

Posted  12/14/16
By the C|C Whistleblower Lawyer Team The U.S. Health and Human Services Office of the Inspector General (HHS-OIG) recently reiterated that “The OIG’s position on the provision of free or below-market goods or services to actual or potential referral sources is longstanding and clear: such arrangements are suspect and may violate the anti-kickback statute, depending on the circumstances.” In addition to...

November 11, 2016

Marie Neba, co-owner of Houston-based home-health agency Fiango Home Healthcare Inc., was convicted for her role in a $13 million Medicare fraud and money laundering scheme.  According to the evidence presented at trial and admissions made in the guilty plea of her husband and co-owner Ebong Tilong, Neba and Tilong paid illegal kickbacks to physicians in exchange for authorizing medically unnecessary home-health services for Medicare beneficiaries.  They also paid illegal kickbacks to patient recruiters for referring Medicare beneficiaries for home-health services and to Medicare beneficiaries for allowing them to bill Medicare using their Medicare information for home-health services that were not medically necessary or not provided.  Neba and Tilong also falsified medical records to make it appear as though the Medicare beneficiaries qualified for and received home-health services.  DOJ

October 25, 2016

Kansas City-based Best Choice Home Health Care Agency Inc. and its owner Reginald King agreed to pay $1.8 million to resolve allegations they violated the False Claims Act by paying kickbacks for the referral of Medicaid-covered patients for home and community-based healthcare services.  According to the government, King paid kickbacks to patient transporter Christopher Thomas for referrals to Best Choice.  The allegations originated in a whistleblower lawsuit filed by Thomas under the qui tam provisions of the False Claims Act.  Thomas will receive a whistleblower reward of $43,178, which represents 10 percent of the federal share of the settlement minus the amount he received in kickbacks.  DOJ

October 21, 2016

Mark Gilmore, owner of Florida compound pharmacy QMedRx, agreed to pay $4.25 million to settle charges that he violated the False Claims Act by billing the government for services that were not reimbursable.  Specifically, the government contends that QMedRx submitted to federal healthcare programs compounded prescriptions that were tainted within the meaning of the Anti-Kickback Statute. The government is still pursuing penalties and fines from other participants within QMedRx.  DOJ (MDFL)

October 3, 2016

Major hospital chain Tenet Healthcare Corporation and two of its Atlanta-area subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., agreed to pay over $513 million to resolve charges they violated the False Claims Act and Anti-Kickback statute through illegal kickbacks it paid in exchange for patient referrals.  The allegations originated in a whistleblower lawsuit filed by Ralph Williams under the qui tam provisions of the federal and Georgia False Claims Acts.  Mr. Williams will receive a whistleblower award of approximately $84 million from the proceeds of the federal and state civil recoveries.  DOJ

September 27, 2016

Ralph J. Cox III, the former CEO South Carolina-based Tuomey Healthcare System, agreed to pay $1 million to settle charges of violating the Stark Law from his involvement in the hospital’s illegal Medicare and Medicaid billings for services referred by physicians with whom the hospital had improper financial relationships.  The illegal physician arrangements resulted in a $237.4 million judgment against Tuomey which DOJ ultimately resolved against Tuomey for payments totaling $72.4 million.  The hospital was subsequently sold to Palmetto Health, a multi-hospital healthcare system based in Columbia, South Carolina.  DOJ

October 17, 2016

New York has joined with other states and the federal government and reached agreement with institutional pharmacy Omnicare Inc. (Omnicare) to settle civil allegations that Omnicare conspired with Illinois-based pharmaceutical drug manufacturer Abbott Laboratories (Abbott) to increase overall utilization of the drug Depakote through the use of various disguised kickback arrangements. Omnicare, acquired by CVS Health Corporation effective August 18, 2015, provides pharmaceuticals and related pharmacy services to long-term care facilities as well as chronic care facilities and other settings. Depakote is approved for treatment of seizure disorders, mania associated with bipolar disorder and prophylaxis of migraines. Omnicare will pay the states and the federal government a total of $28.125 million in civil damages to compensate Medicaid, Medicare, and various other federal healthcare programs for harm suffered as a result of its conduct. NY
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