Sacramento

Fresno Doctors Settle for $2.4 Million Over Alleged Kickback Scheme Involving Prescription Medications

AI Assisted Icon
Published on November 22, 2024
Fresno Doctors Settle for $2.4 Million Over Alleged Kickback Scheme Involving Prescription MedicationsSource: Google Street View

In a significant development concerning medical ethics and legal accountability, two Fresno doctors and their respective medical corporations have agreed to pay over $2.4 million to settle allegations of participating in an illegal kickback scheme; the scheme involved receiving payments for prescribing medications through certain mail-order pharmacies, according to U.S. Attorney Phillip A. Talbert's announcement. Talbert's office has made it clear that kickbacks, which by their nature undermine the sanctity of medical judgement and inflate healthcare costs, will not go unpunished, and those involved in such schemes will not profit at the cost of American taxpayers and patients.

Dr. Jagpreet Mukker, a podiatrist, along with his medical corporation, Jay Mukker, DPM Inc., is parting with $1,598,891 to settle the claims, Dr. Mukker acknowledged and agreed not to dispute that from 2016 to 2020, he took payments tied to prescriptions he issued to a chain of mail-order pharmacies operated by a certain Matthew H. Peters, through questionable investment arrangements, Mukker received payouts that were substantial when compared to the initial investment he made, as disclosed in the settlement. Descriptions such as "reward[] for scripts" raised concerns about the intentions behind Dr. Mukker's prescribing practices and indicated a direct exchange of capital for patient prescriptions, as mentioned on the U.S. Attorney's Office.

Moreover, the settlement acknowledges Dr. Mukker's submission of false claims for Medicare reimbursements with regards claims for peripheral venous studies disguised as covered physician services, which were in fact not covered—Dr. Mukker's practice used a billing code for an evaluation and management service not consistent with what had been furnished to the patient, thereby misleading the federal health program. Amitabh Goswami, D.O., a Fresno pain medicine specialist, and his California Pain Consultants corporation reached a separate settlement of $835,000 for partaking in similar malpractices, according to the Justice Department's press release.

Quashing these deceptive practices has been the wheelhouse of agencies like the Department of Health and Human Services Office of Inspector General and the Defense Criminal Investigative Service of the Department of Defense Office of Inspector General who led the probe into these dealings. Steven J. Ryan, HHS-OIG Special Agent in Charge has expressed a committed dedication to maintaining the integrity of Medicare, while ensuring patients' well-being remains uncompromised, "Kickback schemes jeopardize medical decision-making and undermine the integrity of the Medicare program," Ryan asserted on the U.S. Attorney's Office. The case was handled by Assistant U.S. Attorneys David Thiess and Steve Tennyson, who helped secure these settlements, which should serve as a stark reminder that the corruption of the healthcare system will endure scrutiny and legal repercussion.

The United States, seeking to broaden the scope of accountability, has launched a lawsuit against Peters and various related entities for violations of the False Claims Act, centering on the very kickback scheme which lead to the current settlements, that litigation as described by the U.S. Attorney’s Office is still ongoing.