Poplar Healthcare to Pay Almost $900K to Resolve False Claims Act Allegations

Monday, May 01, 2017

 

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Poplar Healthcare to pay $897,640 to resolve allegations of false clams

Poplar Healthcare PLLC, and Poplar Healthcare Management, LLC of Memphis have entered into a civil settlement agreement with the U.S. under which Poplar will pay $897,640 to resolve allegations under the federal False Claims Act. 

READ THE SETTLEMENT HERE

The government alleges that Poplar promoted and billed the government for diagnostic tests that the government contends were not medically necessary. 

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“Federal funding for diagnostic tests and procedures is predicated on the principle that those tests are ordered because they are medically necessary and in the best interest of patients, and not on other, inappropriate factors. We will continue to take aggressive action to address situations where profit, rather than the best interests of patients, drives the decision to conduct and bill for medical tests,” said Acting U.S. Attorney Stephen G. Dambruch.

Acting United States Attorney Stephen G. Dambruch and Philip Coyne, Special Agent-in-Charge of the Boston Office of Inspector General for the Department of Health and Human Services (HHS-OIG) announced the settlement on Monday. 

The Investigation 

An investigation by the HHS-OIG and the United States Attorney’s Office for the District of Rhode Island determined that these tests, known as immunohistochemical mast cell tryptase stains, were the subject of an extensive, multi-year promotional campaign designed to promote the use of the stain, claiming that Poplar could use the test to definitively diagnose a condition known as “mast cell enterocolitis.” 

The Government alleged that Poplar’s promotion of the test was not consistent with FDA approval requirements, and not supported by adequate scientific evidence.

The investigation that led to the settlement began after Gordon Wang, M.D., a pathologist formerly employed by Poplar, filed a complaint against the company on behalf of the United States in the U.S. District Court for the District of Rhode Island. Under the federal False Claims Act, a private individual who has uncovered fraud against the federal government may file a suit in federal court on behalf of the United States. If the United States is successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery.  

Dr. Wang will receive $205,841 from the proceeds of the settlement.

 

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