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Tag Archives: False

Medicare Advantage Organization and Former COO to Pay $32.5 Million to Settle False Claims Act Allegations

Freedom Health Inc., a Tampa, Florida-based provider of managed care services, and its related corporate entities (collectively “Freedom Health”), agreed to pay $ 31,695,593 to resolve allegations that they violated the False Claims Act by engaging in illegal schemes to maximize their payment from the government in connection with their Medicare Advantage plans, the Justice Department announced today. In addition, the former Chief Operating Officer (COO) of Freedom Health Siddhartha Pagidipati, has agreed to pay $ 750,000 to resolve his alleged role in one of these schemes. You can read the full update on the justice.gov website – here.

The post Medicare Advantage Organization and Former COO to Pay $ 32.5 Million to Settle False Claims Act Allegations appeared first on The Coding Network.

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FTC fines software vendor over false encryption claims

Henry Schein Practice Solutions, Inc., a provider of office management software for dental practices, agreed to pay $ 250,000 to the Federal Trade Commission (FTC) to settle charges that Schein lied to consumers about the level of encryption its product provides. The charges specifically address the level of security offered by Schein’s Dentrix G5 software, an office and data management tool that was marketed to address the day-to-day operations of a dental office including database storage of patient records. The software, originally launched in 2012, was marketed as offering encryption capabilities that would help a practice meet HIPAA security requirements.

In contradiction to Schein’s statements to consumers, Dentrix G5 did not use the National Institute of Standards and Technology (NIST) industry standard Advanced Encryption Standard (AES) security. Schein was aware that its product used a less complicated data encryption method and continued to explicitly promote the software’s data encryption capabilities and claimed that the software met “data protection regulations” in marketing material, the FTC alleged in its complaint.

The U.S. Computer Emergency Readiness Team (US-CERT) issued a warning in 2013 about the data encryption method Schein used in its software. Dentrix G5 used Faircom c-tree-ACE which offers a weak level of obfuscation. The algorithm used in this method was called Faircom Standard Encryption, but the name was changed to Data Camouflage to distinguish it from standard encryption algorithms. Faircom describes their Data Camouflage as a supplement to existing security and not a replacement for other security systems. US-CERT notified Schein of this vulnerability on June 10, 2013.

Schein is required by the consent agreement to notify all customers who purchased Dentrix G5 that the software does not offer industry-standard encryption. Schein agreed to provide the FTC with ongoing progress reports on its notification program, and is prohibited from using false advertising to mislead consumers about its products’ data encryption and security capabilities.

The FTC published a description of the consent agreement in the Federal Register. The consent agreement is open for public comment for 30 days. The FTC will then decide whether to make the consent agreement final. The deadline for public comments is February 4.

HCPro.com – HIM-HIPAA Insider

Paradigm Spine Agrees to Resolve False Claims Act Allegations

Recently, the US Department of Justice made an announcement that Paradigm Spine has agreed to resolve false claim accusations levied against it concerning the coflex-F® device. The department has stated that Paradigm Spine has allegedly provided its health care providers with incorrect information on claiming reimbursement for the coflex device.

Read the full article here: https://www.justice.gov/usao-md/pr/paradigm-spine-agrees-resolve-false-claims-act-allegations

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Louisville Based MD2U and Its Principal Owners Admit To Violating The Federal False Claims Act And Being Liable For Millions

LOUISVILLE, KY – MD2U Holding Company, including its related companies and individually named owners (“Defendants”), have agreed to pay millions to resolve a government lawsuit alleging that they violated the federal False Claims Act by knowingly submitting false medical claims to Medicare and other government health care programs, altering records to support false claims, and providing services that were medically unnecessary U.S. Attorney John E. Kuhn, Jr. today announced….

MD2U also utilized an electronic medical records (EMR) system that permitted the NPPs to easily electronically cut, copy and paste medical notes from prior visits. The ability to migrate notes from visits that occurred weeks, months, or even years prior to the current patient encounter created the illusion that MD2U’s NPPs were performing a significant amount of work during their patient encounters when, in fact, they were not. If the documentation was deficient to bill the highest level code, MD2U would direct NPPs to go back and change the medical record – after the encounter had occurred – to falsely show that more work was performed during the visit in order to support the highest level billing.

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