MIAMI – In a crushing blow to the healthcare system, Florida businessman Daniel Hurt has agreed to pay over $27 million to settle allegations that he and his companies conspired to submit false claims to Medicare for cancer genomic tests that were not medically necessary. The settlement also includes the exclusion of Hurt’s companies from Medicare, Medicaid, and all other federal healthcare programs.
Hurt, who owned and/or operated several companies, including Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, previously pleaded guilty to criminal healthcare fraud for these offenses. The civil settlement is based on Hurt’s ability to pay.
The United States alleged that Hurt conspired with others to knowingly submit false claims for cancer genomic tests that were not medically necessary to treat or diagnose a condition. The scheme involved telemarketing agents soliciting Medicare beneficiaries for “free” cancer genomic tests, telemedicine providers “prescribing” unnecessary tests, and reference laboratories conducting the tests.
“Our office is committed to pursuing those who threaten our government healthcare programs by submitting false claims for medically unnecessary services that are tainted by unlawful payments to marketers,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “As these schemes become more complex and cross district lines, we will continue to work and coordinate with our law enforcement partners and other districts to ensure vigorous enforcement of the law.”
The settlement includes the resolution of allegations brought in three cases filed under the qui tam provisions of the False Claims Act, including an action filed by Robert Gerstein, a minority owner of one of Hurt’s companies. The government alleged that Hurt and his companies received kickbacks in exchange for Medicare referrals.
Deputy Inspector General of Investigations Christian J. Schrank of HHS-OIG stated, “Submitting false claims for medically unnecessary services to Medicare and Medicaid jeopardizes the integrity of vital healthcare programs, and we, along with our law enforcement partners, will continue to make sure those who attempt to do so are held accountable.”
This case serves as a stark reminder of the importance of protecting our healthcare system from those who seek to exploit it for personal gain. The Grimy Times will continue to follow this story and provide updates as more information becomes available.
As part of the settlement, Hurt’s companies will be excluded from Medicare, Medicaid, and all other federal healthcare programs. The exclusion will be effective for a period of five years, starting from the date of the settlement.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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