Jackson Cardio. and Allegiance Health Settle Healthcare Fraud Claims for $4M

Posted: 07/16/2013  browse the blog archive

Michigan-based healthcare practices Jackson Cardiology Associates (JCA) and Allegiance Health have agreed to pay a total of $4 million to settle allegations that the facilities knowingly submitted or caused the submission of false claims to Medicare, Medicaid, and other federal health programs, the U.S. Department of Justice announced this week.

JCA owner Dr. Jashu Patel and his associates allegedly performed medically inappropriate cardiac procedures, including invasive catheterizations at Allegiance Health.  Specifically, the evidence showed that Dr. Patel ordered catheterizations for patients based on findings from nuclear stress tests that he improperly read as positive.  The government found that three-quarters of these patients had no significant heart blockages.  These catheterizations involve snaking a hollow tube into the heart through an incision in the patient’s groin.

Patel and Jackson Cardiology Associates also allegedly performed a variety of other office-based unnecessary tests and procedures, including peripheral stenting. 

Because the unnecessary procedures were paid for by Medicare or Medicaid, these constituted false claims.

The lawsuit was originally filed by Dr. Julie Kovach, a Michigan cardiologist, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Kovach’s share of the settlement has not been announced.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.