Physicians to Pay $700,000 to Settle False Claims Action

Posted by donna@healthlawcenterplc.com in May, 2018

  Three physicians located in Pennsylvania, Florida and Indiana agreed to settle allegations that they each received improper payments for referrals from Universal Oral Fluid Laboratories (UOFL), a Greensburg, Pennsylvania, drug testing lab. By accepting payments from UOFL, the three physicians caused false claims to be submitted to Medicare for drug testing services. According to the Department of Justice,the physicians referred Medicare patients to the laboratory for drug testing services while engaged in a financial relationship with the lab.  Specifically, UOFL paid the settling physicians to refer their patients to the lab for drug tests; UOFL then submitted claims to Medicare for the drug testing services from 2011 to 2014.

The United States alleged that the financial arrangement between the settling physicians and UOFL violated the physician self-referral law, commonly known as the “Stark Law,” and the Anti-Kickback Statute, giving rise to liability under the False Claims Act. The Stark Law forbids physicians from making referrals for certain designated health services payable by Medicare to an entity with which he or she (or an immediate family member) has a financial relationship, unless an exception applies. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of services covered by federal health care programs, such as Medicare. Violations of the Stark Law or Anti-Kickback Statute may give rise to civil liability for treble damages and penalties under the False Claims Act.

See Department of Justice, Western District of Pennsylvania Release