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Civil Monetary Penalties and Affirmative Exclusions

The Office of Inspector General (OIG) has the authority to seek civil monetary penalties (CMPs), assessments, and exclusion against an individual or entity based on a wide variety of prohibited conduct. In each CMP case resolved through a settlement agreement, the settling party has contested the OIG's allegations and denied any liability. No CMP judgment or finding of liability has been made against the settling party.

OIG Enforcement Cases

The cases listed below represent recently-closed cases initiated by the OIG's Office of Counsel to the Inspector General. To view additional cases, including those resolved through the provider self-disclosure protocol, click on the specific categories to the right.

06-22-2016
Former Owner of Illinois Home Health Agency Enters Settlement Agreement with OIG Based on Kickback Allegations
On June 22, 2016, Tariq Chaudhry entered into a settlement agreement with OIG for $50,000 to resolve kickback allegations. Chaudhry is a former owner of a Chicago-area home health agency (HHA). OIG contends that Chaudhry paid illegal remuneration to a Chicago physician in exchange for the physician's referral of patients for home health care services to Chaudhry's HHA. The kickback was disguised as medical director fees, when, in fact, no services were performed. OIG also contends that Chaudhry and the HHA he formerly owned made the payments to the physician through one or more of its marketer employees or contractors.
05-18-2016
Grady Health System in Georgia Settles Case Involving a Patient Dumping Allegation
On May 18, 2016, Grady Memorial Hospital Corporation d/b/a/ Grady Health System (GHS), in Atlanta, Georgia, entered into a $40,000 settlement agreement with OIG. The settlement agreement resolves allegations that GHS violated the Emergency Medical Treatment and Labor Act (EMTALA) when it failed to provide an adequate medical screening examination and stabilizing treatment to a patient. OIG's investigation revealed the following. The patient was extracted from his apartment by a SWAT team and brought to GHS's emergency department (ED) by a police officer due to complaints of suicidal and homicidal ideations. While at GHS, two Licensed Professional Counselors (LPCs) evaluated the patient and determined that the patient should be held involuntarily for further evaluation and treatment. Approximately five hours after the patient's arrival in the ED, the ED physician discharged the patient without consulting the LPCs or the on-call psychiatrist. Under EMTALA, hospitals can be fined up to $50,000 per violation. Senior Counsel Sandra Sands and Associate Counsel Srishti Miglani represented OIG.
05-06-2016
Minnesota Pharmaceutical Company Settles Case Involving Drug Price Reporting
On May 6, 2016, Coloplast Corp. (Coloplast), Minnesota, entered into a $600,000 settlement agreement with OIG. The settlement agreement resolves allegations that Coloplast failed to submit certified monthly and quarterly Average Manufacturer's Price (AMP) data to the Centers for Medicare and Medicaid Services (CMS) for certain months and quarters in 2013, 2014, and 2015. The Medicaid Drug Rebate Program requires pharmaceutical companies to enter into and have in effect a national rebate agreement with the Secretary of Health and Human Services in order for Medicaid payments to be available for the pharmaceutical company's covered drugs. Companies with such rebate agreements are required to submit certain drug pricing information to CMS, including quarterly and monthly AMP data. Senior Counsel Nicole Caucci represented OIG.
05-05-2016
Florida Podiatrist Agrees to 30 Year Exclusion
On May 5, 2016, Eugene A. Fox, D.P.M., agreed to be excluded from participation in all Federal health care programs for a period of thirty years under 42 U.S.C. § 1320a-7(b)(7). OIG's investigation revealed that Dr. Fox submitted claims to Medicare for podiatric services that were not rendered or were rendered by unqualified personnel. Senior Counsel Lauren Marziani and Associate Counsel David Fuchs represented OIG.
05-05-2016
Michigan Ambulance Company Settles Case Involving False Claims
On May 5, 2016, Allied EMS Systems, Inc. (Allied), of Petoskey, Michigan, entered into a $121,722.63 settlement agreement with OIG. The settlement agreement resolves allegations that Allied submitted claims for emergency ambulance transportation to destinations such as skilled nursing facilities and patient residences that should have been billed at the lower non-emergency rate. OIG's Consolidated Data Analysis Center and Office of Counsel to the Inspector General, represented by Associate Counsel Jennifer Leonardis and Senior Counsel Andrea Treese Berlin, collaborated to achieve this settlement.
05-05-2016
Florida Skilled Nursing Facilities Settle Case Involving Excluded Individual
On May 5, 2016, CCRC PropCo-Cypress Village, LLC (Cypress Village), and BLC Atrium-Jacksonville, LLC (Atrium), Florida, entered into a $17,881.65 settlement agreement with OIG. The settlement agreement resolves allegations that Cypress Village and Atrium employed an individual who was excluded from participating in any Federal health care program. OIG's investigation revealed that the excluded individual, a speech-language pathologist, provided items or services to Cypress Village and Atrium patients that were billed to Federal health care programs. Senior Counsel Nicole Caucci represented OIG.
04-15-2016
Texas Home Health Agency Settles Case Involving Excluded Individual
On April 15, 2016, Choice Home Health Care, Inc., and its former owners Patrick Fettinger and Ann Voss (collectively "CHHC"), Texas, entered into a $89,587.82 settlement agreement with OIG. The settlement agreement resolves allegations that CHHC employed an individual who was excluded from participating in any Federal health care program. OIG's investigation revealed that the excluded individual, a home health community liaison/marketing specialist, provided items or services to CHHC patients that were billed to Federal health care programs. Senior Counsel Nicole Caucci represented OIG.

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