Gamma Healthcare Owners Settle Fraud Allegations, Agree to 15-Year Ban on Federal Healthcare Programs

Gamma Healthcare’s Owners Resolve Allegations of False Claims Act

In a settlement agreement, Gamma Healthcare and three of its owners have agreed to pay $13.6 million to settle allegations of violating the False Claims Act. According to the Justice Department, the allegations state that they submitted claims to Medicare for polymerase chain reaction urinalysis laboratory tests that were not ordered by healthcare providers and were deemed medically unnecessary.

As part of the settlement, Gamma Healthcare owners Jerry W. Murphy and Jerrod W. Murphy have agreed to a 15-year exclusion from participating in federal health care programs. This means they will be prohibited from receiving payments or benefits from these programs for the specified duration. The Justice Department emphasized the importance of ensuring compliance with healthcare regulations to protect the integrity of government healthcare programs.

This information was reported by Bloomberg Law Automation, providing an overview of the legal actions taken against Gamma Healthcare and its owners. It serves as a reminder of the consequences that can result from healthcare fraud and the importance of adhering to regulations to maintain the trust and efficiency of healthcare systems.

The settlement agreement reached by Gamma Healthcare and its owners is a significant outcome in the fight against healthcare fraud. The company has been accused of submitting claims for laboratory tests that were not ordered or necessary, which resulted in millions of dollars being paid out by Medicare. The 15-year exclusion for two owners is also a significant consequence that serves as a reminder of how important it is for companies to comply with healthcare regulations.

The Justice Department has emphasized this issue before, stating that ensuring compliance with regulations is crucial for protecting government healthcare programs’ integrity. This settlement agreement serves as an example of how companies can be held accountable for their actions, even if it takes years after initial wrongdoing.

It is important for companies operating in any industry but particularly those dealing with sensitive information such as medical data to ensure compliance with all regulations governing their operations. Failure to do so can result in significant financial penalties and reputational damage, which may harm their bottom line in the long run.

Overall, this settlement agreement highlights the importance of complying with regulations in all aspects of business operations while reminding us that there are consequences for non-compliance that can impact not only individuals but also entire industries.

In a settlement agreement, Gamma Healthcare and three of its owners have agreed to pay $13.6 million to settle allegations of violating the False Claims Act. According to the Justice Department, the allegations state that they submitted claims to Medicare for polymerase chain reaction urinalysis laboratory tests that were not ordered by healthcare providers and…

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