A New Jersey federal court has ordered Nita K. Patel, Kirtish N. Patel and their two diagnostic testing companies, Biosound Medical Services, Inc. and Heart Solution P.C., to pay more than $7.75 million for knowingly submitting claims to the United States Government for falsified diagnostic testing reports. In its Complaint, the Government accused the defendants of developing a fraudulent scheme to create falsified diagnostic testing reports, forge physician signatures on the reports, and thereafter submit claims for reimbursement to Medicare. Additionally, the Government alleged that the defendants had submitted claims after conducting neurological tests without required physician supervision. The federal court’s award comes after the Patels each pleaded guilty to healthcare fraud on November 17, 2015.
The lawsuit against the defendants was filed by a former employee of Biosound Medical Services under the False Claims Act, a federal law that imposes liability on persons and companies that defraud government programs. Significantly, the False Claims Act contains a provision that expressly permits a private citizen with knowledge of fraudulent claims submissions activity against a government healthcare program to file a “Qui Tam” lawsuit on behalf of the United States Government. In a Qui Tam lawsuit, while the Government is given the opportunity to take over the prosecution of that lawsuit against the accused parties, the individual that files the lawsuit may receive anywhere from 15% to 30% of the recovered damages if the suit results in a settlement or verdict in the Government’s favor. Here, the former employee of Biosound Medical Services utilized the Qui Tam provision of the False Claims Act and stands to recover anywhere from $1,162,500 – $1,937,500 of the Government’s award.
Frier Levitt represents private citizens and healthcare providers in Qui Tam lawsuits. Whether you are an individual with knowledge of fraudulent claims submission practices against a federal government program, or a healthcare provider that has been forced to defend against accusations of liability under the False Claims Act, you need an attorney to represent you that understands the healthcare industry, the practice of healthcare, the applicable healthcare laws and regulations, and how to best represent your interests in a Qui Tam lawsuit. Frier Levitt has significant experience representing individuals and healthcare providers in Qui Tam lawsuits alleging violations of the False Claims Act. Additionally, Frier Levitt has worked with healthcare providers to craft uniquely-tailored procedures to ensure compliance with applicable laws to avoid False Claims Act liability. If you believe you have witnessed improper or fraudulent claims submission activities to a federal government program, or if you have been accused of improper claims submission activities in violation of the False Claims Act, contact Frier Levitt today.
