Oncology San Antonio, Kickback Scheme, Texas 2016

A Texas oncology practice and its affiliated physicians have agreed to pay over $4 million to settle False Claims Act allegations.

Oncology San Antonio, PA, and its affiliated physicians have agreed to pay $1.3 million, and CorePath Laboratories, PA, has agreed to pay $2,746,275.22 plus accrued interest, in civil settlements with the United States and the State of Texas to resolve alleged violations of the False Claims Act.

The United States alleged that Oncology San Antonio, a hematology and oncology practice, entered an unlawful kickback arrangement with CorePath Laboratories, a San Antonio-based diagnostic reference laboratory, in August 2016.

CorePath Laboratories provided in-office bone marrow biopsy services at Oncology San Antonio practice locations and performed subsequent diagnostic testing on the biopsies. According to the United States, CorePath Laboratories agreed to pay $115 for each biopsy referred by Oncology San Antonio and its physicians.

The United States contended that the payments for referrals of biopsies constituted kickbacks within the meaning of the Anti-Kickback Statute and that the terms of the written agreement between Oncology San Antonio and CorePath Laboratories failed to meet any statutory safe harbor.

The civil settlement with Oncology San Antonio and its physicians also resolves allegations that Dr. Jayasree Rao, through Oncology San Antonio and her own oncology and hematology practice entity, provided medically unnecessary tests, services, and treatments to Medicare, TRICARE, and Texas Medicaid beneficiaries in the San Antonio Metro Area, and billed the federal healthcare programs for the medically unnecessary tests, services, and treatments.

Dr. Rao and her practice entity also entered a three-year Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).

Source: https://www.justice.gov/usao-wdtx/pr/oncology-practice-physicians-and-reference-laboratory-pay-over-4-million-settle-false