Medsurant Holdings, False Claims Act Violation, Tennessee 2019

NASHVILLE, Tenn. – December 30, 2019 – Medsurant Holdings, LLC, of West Conshohocken, Pennsylvania, has agreed to pay $1.9 million to settle the United States’ allegations that it had violated the False Claims Act, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.

Medsurant Holdings, which operates under the trade name Medsurant Health, is the largest independent provider of Interoperative Neuromonitoring (IONM) services to hospitals and surgeons in the United States. IONM includes various procedures that are used during surgery to monitor a patient’s nervous system in real-time during high-risk surgeries involving the peripheral nervous system, brain and spinal cord.

The settlement resolves the United States’ claims that, from January 1, 2013, through May 31, 2016, Medsurant billed Medicare for units of IONM services without regard to concurrent IONM services that it was providing to patients insured by payors other than Medicare, and that Medsurant billed Medicare for IONM services that were not provided “exclusively to one patient,” as required by Medicare regulations.

This case was handled by the United States Attorney’s Office for the Middle District of Tennessee and investigated by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Mark H. Wildasin represented the United States.

While Medsurant Holdings has agreed to pay $1.9 million to settle the claims, it is not admitting to any wrongdoing in the settlement. The company will pay the settlement amount over a period of time, as agreed upon by the parties.

The settlement serves as a reminder to healthcare providers of the importance of adhering to Medicare regulations and avoiding billing irregularities. It also highlights the importance of government oversight in preventing and detecting healthcare fraud.

The U.S. Attorney’s Office for the Middle District of Tennessee has a long history of working to combat healthcare fraud and protect taxpayer dollars. This case is another example of the office’s commitment to holding healthcare providers accountable for their actions.

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