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Alabama Physician and Practice Settle Case Involving Kickbacks

On April 5, 2018, Rex A. Butler, M.D., and South Central Medical Center, P.C. (collectively, "SCMC"), Andalusia, Alabama, entered into a $505,030 settlement agreement with OIG. The settlement agreement resolves allegations that SCMC solicited and received remuneration from Health Diagnostic Laboratory, Inc. (HDL) and Singulex, Inc. (Singulex), laboratory companies, in the form of "process and handling" payments related to the collection of blood. OIG alleged that SCMC solicited and received the remuneration from HDL and Singulex in exchange for SCMC referring patients for laboratory testing services to HDL and Singulex, for which the Medicare Program paid. OIG also alleged another laboratory company provided SCMC with an in-office phlebotomist for the purpose of collecting blood samples from SCMC's patients, at no cost to SCMC, and SCMC used the blood samples collected by the phlebotomist to order tests from HDL, Singulex, and the other laboratory. Senior Counsels Katie Fink and Jennifer Leonardis represented OIG with the assistance of Program Analyst Mariel Filtz.

Action Details

  • Date:April 5, 2018
  • Enforcement Types:
    • CMP and Affirmative Exclusions