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15 Texas Physicians Agree to Pay $2.83 Million to Settle Kickback Allegations
Garland, Texas – In a major blow to healthcare fraud, 15 Texas physicians have agreed to pay a total of $2.83 million to settle False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law.
The physicians, who practice in various cities across Texas, allegedly received kickbacks from management service organizations (MSOs) in exchange for ordering laboratory tests from several healthcare providers, including Rockdale Hospital dba Little River Healthcare, True Health Diagnostics LLC, and Boston Heart Diagnostics Corporation.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally-funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory.
The settlements announced today resolve allegations that the 15 physicians violated the Anti-Kickback Statute and the Stark Law by receiving thousands of dollars in remuneration from nine MSOs in exchange for ordering laboratory tests.
The physicians who agreed to pay the settlements are:
- Louis Coates, D.O., of Garland, Texas, who agreed to pay $87,694 to settle allegations that from Sept. 26, 2016, to March 14, 2018, he received kickbacks from an MSO, Herculis MG LLC, in return for ordering laboratory tests from Boston Heart.
- Jason DeMattia, M.D., and Candice DeMattia, M.D., both of Tomball, Texas, who agreed to pay $316,142 and $207,009, respectively, to settle allegations that from Aug. 1, 2014, to Dec. 31, 2016, they received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health and Little River.
- Emanuel Paul (E.P.) Descant II, M.D., of Spring, Texas, who agreed to pay $256,466 to settle allegations that from Jan. 5, 2015, through Feb. 3, 2018, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from Little River.
- Mitchell Finnie, M.D., of San Antonio, Texas, who agreed to pay $582,522 to settle allegations that from June 4, 2015, to July 11, 2017, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health.
The settlements should reinforce the message that the Eastern District of Texas will not tolerate healthcare providers who seek to enrich themselves through kickback schemes, said U.S. Attorney Brit Featherston for the Eastern District of Texas.
The outcome is the result of cooperation amongst law enforcement partners focused on upholding the integrity of federal healthcare programs, said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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