Veni-Express Inc., a California-based mobile phlebotomy company, and its owners, Myrna and Sonny Steinbaum, have agreed to pay $135,000 to settle claims that they allegedly submitted false claims for blood testing services and travel mileage. The settlement comes after allegations that, between 2015 and 2019, the company and the Steinbaums knowingly submitted fraudulent claims to federal healthcare programs. According to a recent announcement by the U.S. Attorney's Office for the Eastern District of California, the claims involved phantom venipuncture procedures and non-reimbursable travel mileage to homebound patients.
The actions of Veni-Express have drawn sharp criticism, as government officials emphasize the importance of integrity within federal health care systems. As part of the settlement, Veni-Express is to pay $100,000, with additional payments pending on the sale of company assets. Meanwhile, Myrna Steinbaum and Sonny Steinbaum will pay $25,000 and $10,000, respectively. These figures are based off their ability to pay. "Providers must not bill for services they did not perform," U.S. Attorney Phillip A. Talbert stated, stressing that the settlements aim to actively to protect public funds and ensure the service integrity meant for Medicare beneficiaries. Talbert's statement, obtained by the U.S. Attorney's Office news release, underscores a zero-tolerance stance against such fraudulent activities.
In conjunction with the aforementioned improper billing, the Steinbaums were also accused of paying kickbacks to Altera Laboratories, operating as Med2U Healthcare LLC, for the promotion of Veni-Express' services. This is a violation of the Anti-Kickback Statute, which prohibits the exchange of remuneration for the referral of services covered by federally funded programs, as per the U.S. Attorney's Office. "Improper incentives and billing Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for Medicare enrollees," explained Special Agent in Charge Steven J. Ryan of the HHS-OIG.
The investigation leading to the settlement was notably spearheaded by Banisha Evans and Richard Drummond, respectively a former phlebotomist and a technical director at different healthcare facilities, leveraging the whistleblower provisions of the False Claims Act. Their civil complaints helped to unravel the alleged fraudulent scheme. The qui tam cases, represented by the Eastern District of California, highlight the crucial role that private citizens can play in exposing and confronting healthcare fraud. While the whistleblower's share of the settlement has not yet been determined, their actions have proven instrumental in this significant recovery effort aimed at safeguarding the integrity of federal healthcare programs.
The successful resolution of this case was a result of a coordinated effort by several government entities, including the Civil Division's Commercial Litigation Branch, Fraud Section, the U.S. Attorney's Office for the Eastern District of California, and the HHS-OIG. Trial Attorney Gary R. Dyal and Assistant U.S. Attorney Colleen Kennedy handled the matter directly, as reflected in their efforts to combat healthcare fraud using the False Claims Act.
