Meharry Medical College, False Claims Act Violations, Tennessee 2020

Nashville, TN – Meharry Medical College has agreed to settle allegations of violating the False Claims Act (FCA) by paying $100,749, according to a statement by U.S. Attorney Henry C. Leventis. The agreement was reached after the United States alleged that Meharry submitted fraudulent claims to Medicare seeking payment for physician services provided by unsupervised, non-physician residents from 2016 until March 2020.

The services in question were performed in the internal medicine, OB/GYN, and psychiatric outpatient clinics, as well as psychiatric consultations at Nashville General Hospital. In reality, these services were performed by residents who were not adequately supervised.

“Combating healthcare fraud is a top priority for our office,” said U.S. Attorney Leventis. “The allegations in this case not only constitute fraud on Medicare, but also an unacceptable risk to patients. We appreciate that Meharry agreed to implement changes to its policies to ensure compliance with Medicare’s supervision requirements regarding care provided by residents.”

As part of the settlement agreement, Meharry has agreed to implement a Medicare billing policy designed to ensure compliance with Medicare billing requirements and will provide annual training to its faculty members and in-coming first-year residents concerning Medicare billing requirements for professional services provided by residents.

Dr. Rachel Thomas, a former internal medicine and hospitalist physician employed by TeamHealth, brought the allegations under the qui tam or whistleblower provisions of the FCA. According to the statement, Dr. Thomas received a portion of the recovery under the whistleblower provisions.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Middle District of Tennessee and the U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Wynn M. Shuford represented the United States.

The claims in the settlement are allegations only, and there has been no determination of liability in the case, United States ex rel. Thomas v. Meharry Medical College, Case No. 3:20-cv-00658 (M.D. Tenn.).

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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