Kickback Scandal Rocks Seattle Medical Community
A Huntsville, Alabama-based medical research company has agreed to pay a hefty price for its alleged involvement in a kickback scheme that targeted Medicare patients. Heart Center Research, LLC, a medical research company with ties to Seattle, has entered into a settlement with the U.S. government to resolve allegations that its member physicians referred patients for genetic testing in exchange for kickbacks from a Seattle-area testing company.
According to the settlement agreement, between 2012 and 2013, Heart Center Research allegedly received payments from Natural Molecular Testing Corporation (NMTC), a now-defunct testing company, in return for ordering genetic tests from NMTC, which then billed Medicare. The scheme was allegedly in violation of the Anti-Kickback Statute and the civil False Claims Act.
The claims resolved by the settlement are allegations only; there has been no determination of liability. In August 2019, three doctors and one medical practice entered into settlements with the U.S. government to resolve similar allegations involving NMTC, totaling $1.1 million.
Natural Molecular Testing Corporation (NMTC) declared bankruptcy in 2013, leaving behind a trail of unpaid debts, including a $70 million unsecured claim against the company by the Centers for Medicare and Medicaid Services. The government has little chance of recovering those funds, as there are few remaining assets.
The matter was investigated by the Department of Health and Human Services Office of Inspector General (HHS-OIG). The settlement was negotiated by Assistant United States Attorney Ashley Burns.
Defendant: Heart Center Research, LLC, a medical research company based in Huntsville, Alabama.
Criminal Charges: Allegations of violating the Anti-Kickback Statute and the civil False Claims Act.
City and State: Seattle, Washington.
Exact Date: Between 2012 and 2013.
Sentence or Outcome: Heart Center Research has agreed to pay a total of $1.1 million to resolve the allegations.
Dollar Amount: $1.1 million.
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Key Facts
- State: Washington
- Category: White Collar Crime,Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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