Gamma Healthcare Owners Settle $13.6 Million Medicare Fraud Allegations; Faces 15-Year Exclusion from Federal Healthcare Programs

Gamma Healthcare’s Owners Resolve Allegations of False Claims Act

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

In addition to the monetary 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.

According to Bloomberg Law Automation, this information 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.

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