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Kentucky Addiction Clinic Settles FCA Allegations

February 24, 2014

The DoJ has announced that SelfRefind, a chain of addiction treatment clinics, PremierTox LLC, a clinical laboratory that performs urine testing, and their owners, Drs. Bryan Wood and Robin Peavler have agreed to settle False Claims Act allegations for $15.75 million.  The Government has alleged that the Kentucky companies and their owners submitted claims to Medicare and Medicaid for tests that were medically unnecessary, more expensive than those actually performed, or billed in violation of the Stark Law.  Specifically, the Government has alleged that in late 2010 SelfRefind began referring comprehensive drug screening tests to PremierTox that were unnecessary and more expensive than alternative tests.  The Government goes on to allege that PremierTox submitted inflated claims that misidentified the class of drug being tested and billed for tests referred by SelfRefind in violation of the Stark anti-kickback law.

“Federal health care programs are essential to many of our citizens,” said U.S. Attorney for the Eastern District of Kentucky Kerry B. Harvey.  “We will not tolerate efforts by misguided providers to unfairly enrich themselves at the expense of these programs and the taxpaying public.”

To report Medicare fraud, please contact Frohsin & Barger.

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