Florida Man Settles Medicare Fraud Case by Paying $27 Million
Hurt allegedly conspired with others to submit the false claims. Prosecutors also accused him of receiving and paying kickbacks in exchange for Medicare referrals, a direct violation of the Anit-Kickback Statue (AKS). In total, Medicare paid out over $150 million in false claims because of the actions of Hurt and his companies, according to the settlement agreement.
“Unnecessary medical services and false claims for medical services threaten patients and our public health programs,” U.S. Attorney Roger B. Handberg said in the press release. “This civil settlement demonstrates our commitment to protecting patients from unnecessary testing and our healthcare institutions from fraudulent billing.”
Hurt used his many businesses– Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC– to conspire with telemarketing agencies to target Medicare beneficiaries advertising “free” CGx tests, according to the press release. Between January 2019 and November 2021, Hurt allegedly had telemedicine providers order tests. His laboratories would then conduct the tests and submit claims for payment with the Centers for Medicare and Medicaid Services.
As a result of the settlement, allegations have been resolved in three cases filed under the “whistleblower provisions of the FCA,” which includes actions filed by Robert Gerstein, who worked for Hurt handling billing operations for CGx tests. Gerstein, who is also a minority owner of Sonoran Desert Pathology, is set to receive up to $4.7 million of the total $27 million settlement agreement under a provision of the FCA that allows private parties a percentage of the recovery for filing an action on the government’s behalf.
“We will not tolerate those who prey on older Americans to defraud Medicare,” Principal Deputy Assistant Attorney General Brian M. Boyton said in the press release. “As this settlement reflects, we will use our available resources to protect federal health care programs and the beneficiaries they serve.”
This story is similar to another case in South Florida earlier this year, where Robert M. Clark pled guilty to conning Medicare out of $30 million, according to a press release from the Department of Justice. Clark is facing five years in federal prison for a scam involving stolen beneficiary numbers and bogus tests that were then billed to Medicare, accounting for over $30 million in false charges.
Clark used his company, Clear Choice Diagnostics, to illegally bill Medicare for genetics and COVID-19 test kits that were not eligible for government reimbursement, according to the press release. He is also accused of paying off marketers with bribes and kickbacks to gain referrals to additional Medicare patients, as well as purchasing Medicare Beneficiary ID numbers illegally.
More From This Author
Georgia State Official Committed Healthcare Fraud, Headed to Prison
Report Nik Mebane | Jul 18, 2024
Company Hid Malfunctions in Lead Tests for Children, Pleads Guilty to Federal Criminal Charges
Report Nik Mebane | Jul 16, 2024
Weekly Muck
Join the mission and subscribe to our newsletter. In exchange, we promise to fight for justice.
Weekly
Muck
Join the mission and subscribe to our newsletter. In exchange, we promise to fight for justice.
