A Wisconsin pain clinic has agreed to pay $885,452 to the federal government in exchange for dropping claims that it violated the False Claims Act by paying illegal kickbacks to obtain referrals for procedures covered by Medicare and Medicaid.
Federal prosecutors say the defendant gifted shares of incentive stocks to physicians outside of the company for pain procedures carried out in its pain-management centers. They say the stock could not be sold until the company itself was sold, which itself was tied to the profitability of the firm. As the firm depended largely upon outside referrals, this made the sale of the firm inexorably tied to those referrals.
Prosecutors say these stocks were given as recognition for referrals given in the past as well as in order to induce future referrals.
The defendant firm also allegedly offered the pay and position of medical director to those physicians who were able to deliver to the firm the most referrals. Non-employee medical directors allegedly had no written agreements with the firm regarding the duties they were to carry out, and those named as medical director had no requirement to record or report anything they did while acting as such.
Prosecutors have also agreed to drop charges that the firm prescribed urine tests that were not medically necessary. They say the firm called for urine tests as a matter of course on certain claims despite not indicating in those claims where such a test was necessary. The firm then disclosed those drug test claims to the Department of Health and Human Services.
The Law Offices of Bjorn Brunvand have been representing people charged with capital murder, felony drug charges, drunk driving, government fraud, and white-collar crimes for over a quarter century. Contact our office today to discuss your Tampa Bay-area state or federal charges.