Two Indian-American doctors and their cardiology firm have agreed to pay more than USD 3.6 million (over Rs 23 crore) to resolve allegations that its facilities falsely billed federal health care programs for tests that were not medically necessary.
Jasjit Walia and Preet Randhawa and their New Jersey-based cardiology practice Garden State Cardiovascular Specialists will pay the amount to resolve allegations that they submitted claims to federal insurance program Medicare for various cardiology diagnostic tests and procedures.
The tests included stress tests, cardiac catheterizations and external counterpulsation, which were not medically necessary, US Attorney Paul Fishman for the District of New Jersey said.
Garden State owned and operated several facilities in New Jersey under the name NJ MedCare/NJ Heart.
The allegations resolved by the settlement were raised in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
The whistleblower, Cheryl Mazurek, will receive more than USD 648,000 (around Rs 4.14 crore) as part of the settlement.