California Urologists Settle False Claims Act Allegations for $1.085 Million
Dr. Aytac Apaydin and Dr. Stephen Worsham, two Northern California urologists, have agreed to pay $1.085 million to settle allegations of violating the False Claims Act related to radiation therapy referrals. The settlement resolves claims that they submitted and caused the submission of false claims to Medicare for image guided radiation therapy (IGRT) in violation of the Stark Law and the Anti-Kickback Statute.
The Stark Law, also known as the physician self-referral law, prohibits physicians from referring Medicare services in exchange for financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare.
The United States alleged that Drs. Apaydin and Worsham knowingly caused eight urologists in Monterey and Salinas, California to violate the Anti-Kickback Statute and the Stark Law. The doctors allegedly solicited the urologists to enter into lease agreements with Advance Radiation Oncology Center (AROC) under which the urologists could bill for, and thereby profit from, their referrals of IGRT performed at AROC.
The United States also alleged that Drs. Apaydin and Worsham violated the Stark Law by improperly billing Medicare for their own IGRT referrals to AROC. The financial arrangements between AROC and Salinas Valley Urology Associates (SVUA) did not comply with any exceptions to the Stark Law.
The Lessee Urologists previously entered into settlement agreements pertaining to their IGRT claims, under which they collectively agreed to pay the United States $900,000.
The United States’ investigation was a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Northern District of California, and the Department of Health and Human Services Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability. Drs. Apaydin and Worsham own and operate Salinas Valley Urology Associates (SVUA) in Salinas, California, and previously owned Advance Radiation Oncology Center (AROC), which dissolved in 2016. IGRT is used to treat patients who are diagnosed with cancer, including prostate cancer patients.
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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