OIG Enforcement Abstract: July 1, 2022 – July 15, 2022 | Harris Seaside PLLC

The next is a abstract of the federal Division of Well being and Human Providers’ Workplace of Inspector Normal (OIG) reviews of fraud and abuse enforcement exercise throughout the nation.[1]  The enforcement actions reported are based mostly upon federal and particular person states’ exercise.

The summaries replicate areas of OIG’s and particular person states’ present and up to date enforcement exercise.[2] Figuring out the place regulators’ consideration is targeted may help healthcare suppliers establish areas of focus for compliance and danger evaluation actions.  Though not all of the enforcement actions could also be related to anybody supplier’s healthcare enterprise, there could also be some summaries that might be used as examples in compliance program teaching programs (“What to keep away from”), or utilized in growing a danger administration plan.

Of Observe on this Challenge:

  1. Diagnostic reference lab settlement for paying above truthful market worth for workplace area to physician-lessors seen as fee for referrals. Federal and Massachusetts settlement reported.

*  Company Integrity Settlement (not but reported) to be executed following settlements.

  1. Three 12 months Integrity Settlement to be executed in settlement.
  2. Nationwide dialysis supplier alleged to routinely carry out sure procedures with Finish Stage Renal Illness (“ESRD”) who have been receiving dialysis, with out ample medical indication that the sufferers wanted the procedures.
  3. Medicare Benefit Plan settled allegations of FCA and AKS violations in its used of reward playing cards to induce referrals

July 15, 2022 OIG Information Launch

Federal Well being Care Fraud Cost Filed towards Suburban Chicago Doctor

IL. Defendant, doctor, allegedly prescribed opioids to sufferers with no medical examination or go to after which fraudulently billed Medicare for the nonexistent remedy. The Defendant is accused of pre-signing clean prescriptions for opioids for sufferers of her ache clinic so prescriptions might be supplied to sufferers when she was not on the clinic and sufferers picked up the prescriptions with out having a contemporaneous examination by the Defendant. The Defendant allegedly submitted false claims looking for reimbursement from Medicare for visits that the Defendant knew didn’t happen, false paperwork was created by the clinic and Defendant indicating {that a} face-to-face examination occurred when the sufferers solely picked up the pre-signed prescriptions and didn’t have an precise examination.

July 14, 2022 OIG Information Launch

Licensed Lawyer Sentenced to Jail For Defrauding Medicaid in Scheme Involving Private Care Providers – Defendant Admitted Submitting False Timesheets Over Two-12 months Interval

DC. Defendant, lawyer, pled responsible and admitted that she was employed by two completely different house care businesses in DC to offer private care providers. She submitted false timesheets claiming to offer providers that she didn’t really render. The fraudulent timesheets replicate providers rendered when the Defendant was attending regulation college or can be touring associated to her regulation college program.

Connecticut Ophthalmologist Pleads Responsible to 5-12 months Well being Care Fraud Scheme

MA. Defendant, CT doctor, pled responsible to conspiracy with a medical diagnostics firm that carried out transcranial doppler (TCD) scans. The Defendant ordered medically pointless TCD scans in change for kickbacks. He and the conspirators used false affected person diagnoses to order the pointless mind scans which the co-conspirator used to submit claims to Medicare and different insurance coverage firms. The Defendant acquired money kickbacks and a sham administrative providers charges.

BioReference Laboratories and Mum or dad Firm Comply with Pay $9.85 Million to Resolve False Claims Act Allegations of Unlawful Funds to Referring Physicians


Diagnostic Laboratory to Pay $10 Million to Resolve Self-Referral and Kickback Allegations – Delaware Firm Illegally Paid Kickbacks to Physicians and Physicians’ Teams That Referred Testing to Its Labs; Massachusetts Will Obtain Greater than $140,000

MA. Bio-Reference and OPKO Well being, Inc. (BioReference is a subsidiary of OPKO) agreed to resolve claims that Bio-Reference allegedly paid above market rents to physician-landlords for workplace area to induce referrals from these physicians for lab providers in violation of the FCA. BioReference inaccurately measured the area it might use completely and included a disproportionate share of widespread areas. It additionally analyzed referrals from close by well being care suppliers, together with physician-lessors when deciding to keep up or shut a affected person service middle.

Following an OPKO audit carried out after OPKO’s acquisition of BioReference, the funds to physician-lessors have been recognized as exceeding truthful market worth, however no reviews or overpayment returns have been made to Federal healthcare applications.

The Defendant additionally entered right into a Company Integrity Settlement with OIG.

The matter was initiated by a Qui Tam case.

July 13, 2022 OIG Information Launch

United States Recordsdata Claims Alleging Fresenius Vascular Care, Inc. Defrauded Medicare and Different Healthcare Applications by Billing for Pointless Procedures Carried out on Dialysis Sufferers – Civil Fraud Grievance Alleges Pointless Procedures Carried out on Sufferers with Finish Stage Renal Illness Have been Probably Dangerous

NY. The Defendant, dialysis supplier, allegedly routinely carried out sure procedures with Finish Stage Renal Illness (“ESRD”) who have been receiving dialysis, with out ample medical indication that the sufferers wanted the procedures. The Defendant allegedly subjected ESRD sufferers, together with aged, deprived minority, and low revenue people, to the procedures to extend its revenues.

The matter was initiated by a Qui Tam case.

Solera Specialty Pharmacy Agrees to Enter into Deferred Prosecution Settlement; Firm and CEO to Pay $1.31 Million for Submitting False Claims for Anti-Overdose Drug

MA. The Defendant, specialty pharmacy, entered right into a deferred prosecution settlement and agreed to a civil financial settlement to allegations that it distributed Evzio (highest-priced naloxone available on the market and for which many insurers require a previous authorization request) with out the doctor’s authorization on prior authorization requests. The Defendant’s contact info was substituted for the treating physicians’ info. The Defendant submitted prior authorization requests that contained false info to acquire the approvals and the Defendant waived Medicare beneficiary copayment obligations with out first figuring out if the affected person had a monetary hardship.

The Defendant agreed to a 3 12 months Integrity Settlement as a part of the settlement.

The matter was initiated by a Qui Tam case.

Jury Convicts Man of $600 Million Well being Care Fraud, Wire Fraud, and ID Theft Scheme

NY. The Defendant operated a medical billing firm that billed for procedures that have been both extra critical or fully completely different than these his physician-clients really carried out. The Defendant directed his shoppers to schedule elective surgical procedures by the ER so billing insurance coverage firms can be at the next price. When insurers denied the inflated claims, the Defendant impersonated sufferers who demanded that the insurers pay the excellent balances. He was convicted of conspiracy to commit healthcare fraud, wire fraud and aggravated id theft.

July 12, 2022 OIG Information Launch

Suburban Chicago Physician Charged with Well being Care Fraud in Reference to Alleged False Claims to Medicare and Non-public Insurer

IL. The Defendant, doctor specializing in eradicating moles to display screen for most cancers, was charged with submitting fraudulent claims that falsely represented that sure healthcare providers, together with mole removing procedures, had been supplied to sufferers when the Defendant knew these providers weren’t supplied as represented on the claims and, at occasions, have been medically pointless. It’s alleged that the Defendant eliminated extra moles than have been medically vital after which dictated notes and supplied paperwork to staff to submit fraudulent claims for reimbursement for these providers.

July 11, 2022 OIG Information Launch

Bingham Farms Doctor Convicted of Drug and Well being Care Fraud Expenses

MI. The Defendant, doctor, was convicted for illegal distribution of managed substances and for healthcare fraud. The Defendant allegedly wrote medially pointless prescriptions for managed substances, he prescribed managed substances after receiving money from affected person recruiters who introduced sufferers to his follow, and he wrote prescriptions for no official medical objective in change for compensation.  Many sufferers had no want for the medication.  He allegedly submitted claims asserting he supplied vital remedy to sufferers listed on the false and fraudulent insurance coverage claims.

The managed substances conviction is exterior the scope of this abstract.

East Windsor Man Admits Position in Oxycodone Prescription Fraud Scheme

CT. The Defendant admitted his position in a scheme to accumulate and distribute oxycodone obtained by fraudulent prescriptions when he obtained clean prescription paper from staff at numerous CT medical practices. The Defendant allegedly bought a few of the prescription paper to others who recruited “runners” who acquired Medicaid and Medicare advantages to fill fraudulent prescriptions at numerous pharmacies. The Defendant and co-conspirators crammed out the prescription paper utilizing the runner’s figuring out info and a cast physician’s signature on the prescription.  The runner used their Medicare or Medicaid advantages to fill the cast scripts.

July 8, 2022 OIG Information Launch

Jury Convicts Physician of Well being Care Fraud Scheme

NY. The Defendant, ENT doctor, billed Medicare and Medicaid for an incision process of the exterior ear for sufferers when all he did was carry out an ear examination or ear wax removing. Medicare and Medicaid knowledge demonstrated that the Defendant was an outlier and the best biller for the process in NY.

July 7, 2022 OIG Information Launch

West Virginia Hospital to Pay $1.5 Million to Settle Allegations Regarding Impermissible Monetary Relationships with Referring Physicians

WV. The Defendant, hospital, agreed to make the fee (greenback quantity decided based mostly upon the hospital’s monetary situation) to resolve allegations that it violated the FCA by knowingly submitting or inflicting the submission of claims to Medicare in violation of the Stark Legislation. The Defendant made a self-disclosure that it billed Medicare for sure providers referred by physicians with whom the hospital had a monetary relationship. The violations of the Stark Legislation contain fee of compensation to referring physicians that allegedly exceeded truthful market worth or took into consideration the amount or worth of referrals by the doctor.

Habit Remedy Amenities’ Medical Director Sentenced in $112 Million Habit Remedy Fraud Scheme

FL. The Defendant, doctor, allegedly billed for habit remedy providers that have been by no means rendered and/or have been medically pointless at two habit remedy facilities the place he was the medical director. The Defendant and others admitted sufferers for medically pointless detox providers – the costliest remedy the amenities supplied. Affected person recruiters supplied kickbacks to induce sufferers to attend the applications and gave them unlawful medication to make sure admittance for detox providers at one location. The Defendant submitted false and fraudulent claims for extreme, medically pointless urinalysis drug checks that have been by no means utilized in remedy. Defendant and others approved the re-admission of a core group of sufferers who have been shuffled between the 2 amenities to fraudulently invoice for as a lot as attainable, though the sufferers didn’t want the costly remedy they have been admitted for. The Defendant prescribed a “Consolation Drink” to sedate them, guarantee they stayed on the facility, and to maintain them coming again. His laptop log-in was used, together with his data, to permit others to signal digital medical information to make it seem as if the Defendant supplied the remedy himself, when he didn’t.

Others concerned within the conspiracy had beforehand pled responsible or been discovered responsible.  An lawyer pled responsible to conspiracy to commit cash laundering and was sentenced to 13 months in jail.

July 6, 2022 OIG Information Launch

Two Sentenced for Scheme to Steal and Promote Vaccination Playing cards

UT. The Defendants pled responsible to misdemeanor conspiracy to steal or convert authorities property stemming from the Defendants’ settlement to promote stolen CDC COVID-19 Vaccination Document Playing cards that they admitted have been bought for $50 every. One Defendant admitted to stealing 20 vaccination file playing cards that might be used to promote to others for $50 every.

CEO of Raleigh Healthcare Firm Pleads Responsible to Multi-Million Greenback Healthcare Fraud

NC. Defendant managed two firms that have been licensed with Medicare to provide DME to Medicare beneficiaries. She allegedly billed Medicare for DME with out supporting doctor orders, with out transport merchandise, and when sufferers returned gear acquired within the mail, the Defendant didn’t reimburse Medicare for the gear. Moreover, her firms allegedly billed Medicare within the names of 422 deceased people and through Medicare audits when requested to provide orders for gear, she cast the doctor orders if none existed within the recordsdata.

July 1, 2022 OIG Information Launch

Lawyer Normal Josh Stein Pronounces $11.2 Million Multistate Medicaid Settlement

NC. The Defendant, a multi-state operator of expert nursing amenities, settled to resolve allegations that the Defendant billed Medicaid for medically pointless rehabilitation remedy providers and supplied substandard expert nursing providers that didn’t meet federal necessities for some residents or established remedy protocols. Underneath the scheme, remedy billed to Medicare and Medicaid was both not affordable and vital, not expert, or not coated by Medicare Half A and Medicaid coinsurance advantages. It’s alleged that the Defendant violated the Federal and NC FCA.

The matter was initiated by a Whistleblower lawsuit.

Performing AG Platkin Pronounces the Arrest of Hudson County Pharmacist Charged with Promoting Pretend COVID-19 Vaccination Document Playing cards to People Who Did Not Obtain the Vaccine

NJ. The Defendant, pharmacist, was arrested for allegedly promoting pretend COVID-19 vaccination file playing cards with out really administering the vaccine after which coming into the false info right into a State managed database of COVID-19 vaccination information.

MCS Benefit Agrees to Pay 4.2 Million {Dollars} to Resolve Allegations that it Violated the False Claims Act and Anti-Kickback Statute

PR. Defendants, a Medicare Benefit program, agreed to settle allegations that it submitted claims for fee to Medicare associated to a present card incentive program which violated the FCA and the AKS. The Defendant distributed reward playing cards to administrative assistants of suppliers to induce the assistants to refer, suggest or association for enrollment of Medicare beneficiaries into the Defendant’s plan. In reaching the settlement, the Federal authorities thought of the Defendant’s cooperation within the investigation, its implementation of controls and revisions to inside insurance policies to advertise and assist future compliance.

Division of Justice Settles Lawsuit In opposition to Backbone Machine Distributor and its House owners Alleging Unlawful Kickbacks to Physicians

UT. Defendants, distributor of spinal implant units, its homeowners and two physician-owned distributorships, agreed to resolve allegations they violated the FCA by paying physicians to make use of the Defendant-distributor’s medical units in spinal surgical procedures. The physician-owned distributorships have been alleged to be automobiles for fee of kickbacks to induce physicians to make use of the medical units of their surgical procedures. The physicians have been allegedly paid based mostly on referrals, made false statements to healthcare suppliers, and terminated physicians who didn’t refer sufficient sufferers.


  • AG = Lawyer Normal
  • AKS = Anti-Kickback Statute
  • CIA = Company Integrity Settlement
  • CMP = Civil Financial Penalties
  • CMS = Facilities for Medicare and Medicaid Providers
  • CPT = Present Procedural Terminology Codes
  • DME = Sturdy Medical Tools
  • E&M = Analysis & Administration providers
  • FEHBP = Federal Staff Well being Advantages Program
  • FMV = Truthful Market Worth
  • DOJ = United States Division of Justice
  • FCA = False Claims Act
  • FWA = Fraud, Waste & Abuse
  • HHS = Division of Well being and Human Providers
  • IA = Integrity Settlement
  • LTC = Lengthy Time period Care (normally amenities)
  • MCO = Managed Care Group (sometimes Medicaid)
  • MFCU = Medicaid Fraud Management Unit
  • MSO = Administration Providers Group
  • OIG = Workplace of Inspector Normal in HHS
  • OT = Occupational Remedy
  • PBM = Pharmacy Profit Managers
  • PT = Bodily Remedy
  • SNF = Expert Nursing Facility

[1] Not included within the summaries are prosecutions associated solely to drug diversion and inappropriate prescriptions, affected person fiscal or bodily abuse, or non-healthcare associated issues. The summaries additionally don’t embody enforcement bulletins of arrests with no report of an indictment or civil criticism.

[2] The summaries ought to be thought of to replicate allegations and never essentially be thought of to be statements of truth.


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