A well-known Alabama medical research company, Health Center Research LLC (HCR), agreed to pay a pricey settlement to the Department of Justice last month. According to a recent DOJ press release, HRC entered a $1.1 million agreement to resolve allegations claiming that between 2012 and 2013 they referred patients to unnecessary genetic testing in exchange for money from a now-defunct company called Natural Molecular Testing Corporation (NMTC).
NMTC, which was based in Washington state and declared bankruptcy in 2013, had then filed Medicare claims for millions of dollars worth of tests. A local newspaper reports that NMTC still has “an unsecured claim against it for $70 million from the Centers for Medicare and Medicaid Services…. [with] little chance of recovering the money due to NMTC’s few remaining assets”.
HCR’s alleged involvement in the scheme would be a violation of the Anti-Kickback Statute and civil False Claims Act, which could have put the three physicians involved at risk of up to 10 years in prison and hefty financial fines if found guilty. However, in this case the settlement HRC agreed to does not determine any liability.
Physicians tend to be attractive targets for kickback schemes as they are a source of referrals for other health care providers and pharmaceutical companies. For this reason, it’s important to work with a seasoned defense attorney that can work with you to mitigate the risk of being involved in similar schemes.
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