New Jersey Chiropractor Agrees to Pay $2 Million to Resolve Allegations of Unnecessary Knee Injections and Kickbacks
David Podell, a New Jersey chiropractor, has agreed to pay the United States $2 million to resolve False Claims Act allegations that he both knowingly billed Medicare for medically-unnecessary viscosupplementation injections and knee braces and that he received illegal kickbacks, the Justice Department announced today.
Podell previously owned and managed a clinic in Edgewater, New Jersey that performed viscosupplementation, among other procedures. Along with a business partner, he also promoted a business model to other chiropractors for running and marketing a clinic that specialized in the treatment of osteoarthritis through the administration of fluoroscopic-guided viscosupplementation injections and the provision of knee braces. This led to the formation of the Osteo Relief Institutes.
Viscosupplementation is a treatment for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid.
The government alleged that Podell caused his clinic and other Osteo Relief Institutes to bill Medicare for viscosupplementation injections for patients who did not need them, to use multiple brands of viscosupplements successively on patients without clinical support, and to use discounted viscosupplements reimported from foreign countries. The government also alleged that Podell caused his clinic and the Osteo Relief Institutes to provide unnecessary custom knee braces to patients. The government further alleged that Podell solicited and received kickbacks from a manufacturer of knee braces in exchange for ordering more of the manufacturer’s braces for his clinic.
“Billing for services or items that are medically unnecessary or tainted by illegal kickbacks threatens the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Civil Division. “The department will continue to pursue providers who seek to improperly enrich themselves at the expense of these programs, their beneficiaries, and the taxpayers.”
“Medical providers have a responsibility to ensure that the products and services that they provide are medically necessary and appropriate,” said Special Agent in Charge Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Providing medically unnecessary products and services can put a patient’s health and safety at risk and waste vital taxpayer dollars. HHS-OIG will continue to investigate and hold accountable those who put their financial interests above those of Medicare beneficiaries.”
Defendant: David Podell
Criminal Charges: Unnecessary Knee Injections and Kickbacks
City and State: Edgewater, New Jersey
Exact Date: 2023 (resolved)
Sentence or Outcome: $2 million settlement
Dollar Amount: $2 million
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
