Health Care Providers, Marketers Settle Kickback Allegations for $1.9 Million
A group of medical professionals and healthcare marketers have agreed to pay more than $1.9 million to settle allegations related to violations of the False Claims Act involving laboratory kickback schemes, federal officials announced Thursday.
The settlement resolves claims that several doctors and their practices, along with healthcare marketing firms, accepted financial incentives in exchange for referring patients to a laboratory in Anderson, South Carolina. The allegations also include claims that false or fraudulent testing reimbursement requests were submitted to Medicare and TRICARE, federal health insurance programs.
Under the agreement, the parties have pledged to cooperate with ongoing federal investigations into other individuals and entities potentially involved in the scheme.
The U.S. Department of Justice (DOJ) stated that the following medical professionals and businesses have agreed to the settlements:
Dr. Gerald Congdon, along with Coastal Urgent Care LLC and Coastal Wellness Center LLC, based in Pawleys Island and Myrtle Beach, South Carolina, will pay $400,000. They were accused of receiving payments disguised as rental and phlebotomy fees from the South Carolina laboratory in exchange for ordering tests between 2016 and 2021.
Dr. Gbenga Aluko and Eagle Medical Center PC, of Charlotte, North Carolina, will pay $250,000 to settle allegations of similar payments between 2016 and 2021.
Dr. Anup Banerjee and Gastonia Medical Specialty Clinic P.A., of Gastonia, North Carolina, have agreed to pay $206,000 for allegedly receiving improper financial incentives between 2017 and 2021.
Omar Hussain and his marketing firm, Curis Healthcare Inc., based in South Miami, Florida, will pay $817,808. The DOJ claims the company received commissions between 2020 and 2021 based on the volume of Medicare and TRICARE referrals they arranged.
Saeed Medical Group Ltd., along with Hussain and Curis Healthcare Inc., have agreed to pay an additional $240,000 to resolve allegations of receiving cash payments in exchange for test referrals.
The case centers on alleged violations of the Anti-Kickback Statute, which prohibits offering or receiving financial incentives in exchange for medical referrals covered by federal healthcare programs. Officials say such practices can undermine medical decision-making, increase healthcare costs, and lead to unnecessary services.
“We will continue to hold accountable individuals and entities that accept money to steer federal healthcare beneficiaries to a particular laboratory for testing,” said Brett A. Shumate, Principal Deputy Assistant Attorney General of the DOJ’s Civil Division.
Federal officials emphasized the impact of kickback schemes on the integrity of taxpayer-funded healthcare programs.
“The public puts immense trust in medical professionals, and disdain for the rule of law damages that trust and erodes their credibility,” said Steve Jensen, Special Agent in Charge of the FBI’s Columbia Field Office.
The investigation was conducted by the DOJ, the U.S. Attorney’s Office for the District of South Carolina, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Department of Defense Office of Inspector General, and the FBI.
While the settlements resolve the financial claims, the government noted that the allegations remain just that—allegations. No determination of liability has been made.
Federal authorities continue to encourage the public to report potential healthcare fraud through the Department of Health and Human Services' fraud hotline at 1-800-HHS-TIPS (800-447-8477).