Five cardiologists and two medical practices are the subject of a federal whistleblower lawsuit that was initiated by a former colleague who is accusing them of billing Medicare for unnecessary procedures.
Cardiologist Tulio Emanuele initiated the whistleblower lawsuit against Hamot Medical Center, Medicor Associates, and five former colleagues – Drs. Richard W. Petrella, Robert J. Ferraro, Charles M. Furr, Timothy C. Trageser, and Donald Zone – after learning they allegedly performed unnecessary angioplasty operations and surgeries, than overbilled Medicare for the procedures, between 2001 and 2006, the Erie Times-News reported.
The whistleblower lawsuit alleges that Hamot had signed annual $75,000 contracts with Medicor Associates – the practice which the five doctors worked under while at Hamot - for each of the doctors that amounted to nothing more than "sham arrangements intended to disguise the actual purpose of Hamot to pay kickbacks to Medicor and [its subsidiary] Flagship CVTS in exchange for patient referrals."
It also suggests that doctors and Medicor attempted to "to establish and promote the rapid development of a competitive cardiovascular surgery program at Hamot” while also attempting to increase revenue for itself and the hospital. Because of this, doctors pushed for more expensive surgeries like angioplasties – which costs approximately $20,000 – instead of attempting using more inexpensive medicinal options.
The defendants then allegedly violated the False Claims Act by billing Medicare for the unnecessary procedures, Forbes reported.
If you are aware of fraud that a company is perpetrating against the government, contact Sokolove Law today to learn more about what is necessary to pursue a whistleblower lawsuit.