Duttala Obul Reddy, Medicare Fraud, Illinois 2015

Medicare Fraud Exposed: Springfield Psychiatrist Ordered to Pay $908,000

U.S. District Judge Sue E. Myerscough has entered judgment in favor of the government and against a Springfield psychiatrist, Duttala Obul Reddy, for $908,000, to settle allegations of false billing, as announced by U.S. Attorney Jim Lewis.

According to a complaint filed in September 2015, by the government, from January 2008 through February 2013, Reddy allegedly submitted bills for evaluation and management services provided at long-term care facilities that either had not been provided or had not been provided to the extent claimed.

These services were provided to residents of central Illinois nursing homes, including Liberty Village, Pittsfield; Prairie Village, Rantoul; Mason City Nursing Home; Heritage Manor, Gillespie; Beverly Farm, Godfrey; and, North Church Rehabilitation, Jacksonville.

Under the terms of the settlement agreement, Reddy denies the allegations that he submitted or caused submission of false claims for payment under Medicare and Medicaid for medical services.

Assistant U.S. Attorneys Gregory M. Gilmore and Lillian N. Stewart of the Central District of Illinois represented the government. The U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police, Medicaid Fraud Control Unit, conducted the investigation.

As part of the settlement, Reddy has agreed to his exclusion from participation in Medicare, Medicaid and all other federal health care programs for a period of 10 years. Following the 10-year period, Reddy may submit a written request for reinstatement to the Office of Inspector General for the U.S. Department of Health and Human Services.

Reddy further agrees that the termination of his eligibility to participate in the Illinois Medical Assistance Program, which became effective December 30, 2014, shall be permanent.

The case serves as a reminder of the importance of transparency and accountability in the medical industry. The government will continue to work tirelessly to protect the integrity of Medicare and Medicaid programs.

Defendant: Duttala Obul Reddy

Criminal Charges: False billing, submission of false claims for payment under Medicare and Medicaid for medical services

City and State: Springfield, Illinois

Exact Date: January 2008 through February 2013, and September 2015

Sentence or Outcome: $908,000 fine, exclusion from participation in Medicare, Medicaid, and federal health care programs for 10 years

Dollar Amounts: $908,000

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