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Texas Doctor Enters Settlement Agreement with OIG on Kickback Allegations

Dr. Jerry McShane - a Houston, TX occupational health specialist- entered into a settlement agreement with the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services, effective June 26, 2014. The $134,200 settlement resolves allegations that Dr. McShane received remuneration from Jack L. Baker, MD and Fairmont Diagnostic Center and Open MRI, Inc. (Fairmont), an imaging facility in Houston, TX, in the form of compensation from a Medical Director Agreement and from the benefit of a referral coordinator whose compensation was paid by Fairmont. OIG alleged that these financial arrangements took into account the value and volume of referrals made to Fairmont by Dr. McShane. Senior Counsels Kristen Schwendinger and Robert M. Penezic represented OIG.

Action Details

  • Date:June 26, 2014
  • Enforcement Types:
    • CMP and Affirmative Exclusions