Feds land judgements of $140M for alleged kickbacks, false claims.

Oaktree Medical Center, First Choice Healthcare, Labsource, Pain Management Associates of the Carolinas, Pain Management Associates of North Carolina, ProLab, ProCare Counseling Center.

Some are pain management clinics, others are drug testing laboratories or substance abuse counseling centers, but all were owned or operated by Daniel McCollum and played a role in what the Justice Department maintains was the chiropractor's web of illegal kickbacks and unnecessary opioid prescriptions, according to a news release from the acting U.S. attorney for South Carolina, Rhett DeHart.

At the conclusion of a two-year case one of the largest ever False Claims Act judgements in the District of South Carolina the U.S. District Court has entered $140 million in default judgements against McCollum's network of clinics and laboratories, the news release said.

The civil settlement is a result of claims brought forward by five former employees of McCollum's clinics: Donna Raunch, Muriel Calhoun, Brandy Knight, Karen Mathewson and Tracy Hawkins.

Under the whistleblower provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery, according to the news release.

In its complaint, filed on May 31, 2019, the United States alleged the pain management clinics and drug testing laboratories provided illegal financial incentives to doctors and mid-level providers to induce the referrals of urinary drug tests, billed federal health care programs for unnecessary urinary drug testing and billed or caused to be billed false claims for steroid injections, opioid prescriptions and lidocaine ointment prescriptions that were medically unnecessary or lacked a legitimate medical purpose.

According to the claim, McCollum's clinics violated the Stark Law, which prohibits billing Medicare for laboratory testing services ordered by a physician who has a financial relationship with the laboratory, and the Anti-Kickback Statute, which prohibits offering or paying anything of value to induce the referral of items or services...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT