Headlines that Matter for Companies and Executives in Regulated Industries

Florida Lab Owner Agrees to Pay Over $27 Million to Resolve Three Whistleblower Lawsuits

Daniel Hurt, the prior owner and operator of Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, reached a settlement agreement to resolve allegations that he and his companies violated the False Claims Act.

According to the US Department of Justice’s (DOJ) press release, the government alleged that Hurt conspired with telemedicine providers to prescribe cancer genomic tests that were not medically necessary to either treat or diagnose a condition. Hurt also allegedly conspired with laboratories to conduct these tests, billing laboratories and hospitals before submitting the false claims for reimbursement. Hurt is further alleged to have both received and paid kickbacks in exchange for Medicare referrals.

Under the settlement, Hurt and his entities will be excluded from participation in all federal health care programs, including Medicare and Medicaid, by the US Department of the Health and Human Services Office of Inspector General.

Hurt previously pled guilty to two counts of conspiracy to commit offenses against the United States in violation of 18 U.S.C. § 371 and one count of conspiracy to commit healthcare fraud in violation of 18 U.S.C § 1349. United States v. Hurt, Nos. 2:22-cr-189, 22-cr-224, 22-cvr-231 (W.D. Pa.).

Read the DOJ’s press release here.

Pennsylvania Not-for-Profit Corporation Agrees to Pay $735,000 to Settle Qui Tam Lawsuit

Penn Highlands Healthcare and its hospital, Penn Highlands DuBois, agreed to pay $735,000 to resolve allegations that they violated the Physician Self-Referral Law, referred to as the Stark Law. The government alleged that Penn Highlands paid improper compensation to two physicians for “employment services” under a Consulting, Medical Director, and Related Services Agreement before the agreement ever went into effect, and when neither physician was employed by Penn Highlands. As part of the settlement, the three relators — all medical providers previously employed by Penn Highlands — will receive $154,350.

Read the DOJ’s press release here.

Owner of Physical Therapy Clinics Sentenced to More Than Two Years for Health Care Fraud

Chang Goo Yoon, the prior owner and operator of several physical therapy clinics in Massachusetts, was sentenced to 27 months’ imprisonment after a jury found him guilty of two counts of health care fraud. According to the DOJ’s press release, Yoon charged patients for non-existent physical therapy appointments, including sessions that purportedly occurred when Yoon was actually traveling internationally and gambling at casinos. In total, Yoon submitted over $1 million in false insurance claims.

Read the DOJ’s press release here.