Gamma Healthcare Owners Settle $13.6 Million for False Claims in Healthcare Fraud Investigation

Gamma Healthcare’s Owners Resolve Allegations of False Claims Act

The Justice Department has announced that Gamma Healthcare, along with three of its owners, has reached a settlement agreement to pay $13.6 million to settle allegations of violating the False Claims Act. The allegations state that they submitted claims to Medicare for polymerase chain reaction urinalysis laboratory tests that were not ordered by healthcare providers and were deemed medically unnecessary.

In addition to the monetary settlement, Gamma Healthcare owners Jerry W. Murphy and Jerrod W. Murphy have agreed to a 15-year exclusion from participating in federal health care programs. This means they will be prohibited from receiving payments or benefits from these programs for the specified duration. The Justice Department emphasized the importance of ensuring compliance with healthcare regulations to protect the integrity of government healthcare programs.

This information was reported by Bloomberg Law Automation, providing an overview of the legal actions taken against Gamma Healthcare and its owners. It serves as a reminder of the consequences that can result from healthcare fraud and the importance of adhering to regulations to maintain the trust and efficiency of healthcare systems.

The settlement agreement was reached after a thorough investigation into Gamma Healthcare’s practices by federal authorities. The Justice Department found that Gamma Healthcare had submitted false claims for laboratory tests that were not necessary or ordered by healthcare providers, leading to significant financial losses for Medicare.

As part of their settlement agreement, Gamma Healthcare has agreed to pay back $13.6 million in restitution funds. In addition, two other individuals associated with Gamma Healthcare have also been charged with criminal fraud and are awaiting trial.

The Justice Department’s crackdown on healthcare fraud is an ongoing effort to protect government healthcare programs and ensure that patients receive high-quality care without unnecessary testing or billing.

According to Bloomberg Law Automation, this case serves as a stark reminder of the importance of compliance with regulations in the healthcare industry. As such, it is crucial for all stakeholders in this industry to prioritize ethical behavior and ensure that patient care remains at the forefront of all decisions made.

Overall, this settlement agreement highlights the need for continued vigilance in combating healthcare fraud and ensuring compliance with regulations in order to maintain public trust in our healthcare system.

Leave a Reply