Florida dermatologist Tim Ioannides, M.D., owner of Treasure Coast Dermatology in Vero Beach and Port St. Lucie, has agreed to pay $2.5 million to resolve federal allegations of billing fraud against Medicare and TRICARE. The Southern District of Florida U.S. Attorney’s Office announced today that Ioannides repeatedly submitted claims for complex muscle flap surgeries he never performed, raking in outsized reimbursements from 2010 to 2016.
From 2011 to 2013, Ioannides became the highest paid physician in the nation for muscle flap procedures—surgical reconstructions involving muscle dissection and transposition—despite never carrying out the operations. Federal investigators say he systematically upcoded cryotherapy treatments, falsely claiming he treated more skin lesions than actually removed, inflating claims for liquid nitrogen procedures. These false submissions defrauded federal health programs and jeopardized taxpayer-funded care.
“Physicians who bill for procedures they do not perform put personal monetary gain over their duty to their patients, and they raise the cost of health care for all of us as patients and taxpayers,” said U.S. Attorney Benjamin G. Greenberg. “We will relentlessly pursue this type of fraud and abuse that plagues federal health care programs and threatens their financial stability.”
As part of the settlement, Ioannides has also agreed to a three-year integrity agreement with the U.S. Department of Health & Human Services, Office of Inspector General—a watchdog mandate requiring strict compliance oversight. Special Agent in Charge Shimon R. Richmond of HHS-OIG called the misconduct a betrayal of medical ethics: “Physicians who prioritize their personal greed over patient care violate their Hippocratic oath in a particularly deplorable manner.”
The case was initiated by Patricia Cleary, a former patient of Ioannides, who filed a qui tam lawsuit under the False Claims Act. The whistleblower provisions allowed her to sue on behalf of the government and earn a share of the recovery. Cleary will receive $475,000 from the settlement. The government intervened in the case, taking over primary litigation in what officials called a textbook example of provider-side fraud.
The investigation was led by the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG, and the Defense Criminal Investigative Service (DCIS). Assistant U.S. Attorney Susan Torres handled negotiations, while OIG Senior Counsel Kenneth D. Kraft finalized the integrity agreement. The case, Patricia Cleary v. Tim Ioannides, MD & Tim Ioannides, MD, LLC d/b/a Treasure Coast Dermatology, No. 15-14306-Civ-Rosenberg, remains an allegation without a determination of liability. Court records are available via the Southern District of Florida’s public docket system.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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