Investigations Newsletter: Doctors and Alabama Cardiac Center to Pay $1.1 Million to Resolve Kickback Allegations

Arent Fox

DOJ News

Doctors and Alabama Cardiac Center to Pay $1.1 Million to Resolve Kickback Allegations

On August 27, the US Attorney’s Office for the Western District of Washington announced a $1.1 million settlement with three physicians and a cardiology center to resolve alleged violations of the Anti-Kickback Statute and the civil False Claims Act.

The government alleged that the health care providers engaged in a kickback scheme from 2012 to 2013, where the providers accepted payments from a Seattle-area testing company in exchange for referring patients for genetic testing. The testing company in turn billed Medicare for the tests. The matter was investigated by the Department of Health and Human Services Office of Inspector General, and the settlements were negotiated by the US Attorney’s Office.

Read the USAO Press Release here.

Chicago Youth Counseling Center Allegedly Engaged in $4 Million Medicaid Fraud Scheme

On August 27, the owners of a Chicago youth counseling center were indicted for their involvement in a scheme that allegedly defrauded Illinois Medicaid out of approximately $4 million. According to the indictment, which was returned in the Northern District of Illinois, the owners billed Illinois Medicaid from 2011 to 2018 for mental health counseling services that were never actually provided. The owners allegedly directed employees to backdate and falsify patient records to show that a licensed practitioner had reviewed and approved certain mental health services. The indictment also claims that the owners sought Medicaid reimbursement for non-reimbursable activities, such as internal case reviews, staff training, clinical supervision, and recordkeeping.
 
The US Attorney’s Office and Illinois Attorney General’s Office had also previously intervened in a lawsuit filed by a private citizen pursuant to the qui tam provisions of the False Claims Act against the same Chicago youth counseling center. This action is presently pending in federal court.

Read the USAO Press Release here.

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