Feds and Whistleblowers Allegedly Expose Healthcare Fraud in Major Settlement with Gamma Healthcare

Owners of Gamma Healthcare Settle False Claims Act Allegations

In a recent settlement agreement with the Justice Department, Gamma Healthcare and its owners, Jerry W. Murphy and Jerrod W. Murphy, have agreed to pay $13.6 million to resolve allegations of False Claims Act violations. The company was accused of submitting claims to Medicare for laboratory tests that were not ordered by health care providers and deemed medically unnecessary.

As part of the settlement, Gamma Healthcare and the Murphys have been excluded from participating in federal health care programs for 15 years. This agreement serves as a resolution to the allegations brought forth by the DOJ regarding the submission of improper claims for polymerase chain reaction urinalysis tests.

The Justice Department highlighted the importance of upholding the integrity of federal health care programs and holding accountable those who engage in fraudulent practices. This case underscores the consequences that can result from violating the False Claims Act and showcases the commitment to enforcing laws that protect the integrity of government health care programs.

This information was reported by Bloomberg Law Automation and serves as an example of the repercussions faced by companies and individuals who are found to have committed health care fraud. The settlement reached in this case demonstrates a commitment to holding accountable those who defraud government health care programs and showcases efforts to maintain the integrity of the system.

Gamma Healthcare had previously denied any wrongdoing, but after investigations by several agencies including HHS-OIG, CMS, FDA, DEA, FBI, IRS, US Attorney’s Office Southern District of New York, they were accused of submitting false claims related to PCR urinalysis testing services.

The DOJ highlighted that this case is a reminder that fraudulent behavior will not be tolerated in federal healthcare programs. The agency stated that it is committed to protecting these programs from fraudsters who seek to exploit them for personal gain.

The Murphys also expressed their regret for any harm they may have caused through their actions and stated that they are committed to complying with all applicable laws and regulations moving forward.

This settlement marks one more victory for law enforcement agencies working together with whistleblowers to ensure compliance with federal healthcare regulations and protect patients from harm caused by fraudulent practices.

Sophia Reynolds

As a content writer at newsloki.com, I'm always on the lookout for the next intriguing story to share with our audience. With a passion for crafting engaging and informative content, I delve into a variety of topics ranging from breaking news to feature pieces. My goal is to captivate readers through my words and keep them coming back for more. When I'm not typing away at my keyboard, you can find me exploring new coffee shops, diving into a good book, or taking long walks in nature. Join me on this journey of storytelling and discovery at newsloki.com - where every word has the power to inform and inspire.

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