Daniel Hurt, the owner and/or operator of multiple healthcare entities, including Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, has agreed to pay over $27 million to settle allegations of False Claims Act (FCA) violations.
This resolution stems from accusations that Hurt and his companies collaborated with others to defraud Medicare by submitting false claims for cancer genomic (CGx) tests that were medically unnecessary and obtained through illegal kickbacks.
As part of the settlement, Hurt, along with his associated companies, has agreed to be excluded from Medicare, Medicaid, and all other federal healthcare programs by the Department of Health and Human Services Office of Inspector General (HHS-OIG).
Previously, Hurt pleaded guilty to criminal healthcare fraud related to these offenses. The civil settlement amount is based on Hurt’s ability to pay.
The United States alleged that Hurt, his companies, and others conspired to submit false claims for CGx tests that were not medically necessary, violating the Anti-Kickback Statute (AKS).
It was claimed that Hurt received and paid kickbacks in exchange for Medicare referrals. The scheme involved soliciting Medicare beneficiaries for “free” CGx tests, collaborating with telemedicine providers to prescribe unnecessary tests, and submitting claims for payment to Medicare.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, affirmed the government’s commitment to protecting federal healthcare programs and beneficiaries.
U.S. Attorneys Roger B. Handberg, Markenzy Lapointe, and Philip R. Sellinger echoed this sentiment, stressing the importance of safeguarding patients and healthcare institutions from fraudulent billing and unnecessary testing.
The settlement also resolves allegations brought forward under the whistleblower provisions of the FCA. Robert Gerstein, a minority owner of Sonoran Desert Pathology and former employee of Hurt, who managed the billing operations for CGx tests, filed one of these actions.
Under the resolution, Gerstein stands to receive up to $4.7 million, representing 17% of the government’s recovery.
This resolution, achieved through collaboration between various federal agencies and law enforcement offices, underscores the government’s commitment to combating healthcare fraud. It highlights the significance of the False Claims Act in addressing such fraudulent schemes.
Individuals with information about potential fraud can report it to the Department of Health and Human Services.
The investigation and resolution of this matter were spearheaded by the Justice Department’s Civil Division, with support from the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, and District of New Jersey, as well as the HHS-OIG.
