The tangled web of kickbacks in the healthcare industry has ensnared yet another group, this time in Denver, Colorado. The U.S. Attorney's Office for the District of Colorado has announced significant settlements resulting from allegations of fraud against Assure Holdings Corp., its subsidiary Assure Neuromonitoring LLC, and several individuals. The group has agreed to a settlement of over $2 million to resolve accusations of violating the False Claims Act by engaging in illegal kickback operations for neuromonitoring services.
In a crackdown effort to maintain ethical standards in healthcare, these settlements come as a statement against the corrupt influences pervading medical decision-making. According to the U.S. Department of Justice, Assure was alleged to have paid remuneration to surgeons to induce them to quickly order neuromonitoring services from Assure. This practice is strictly prohibited under the Anti-Kickback Statute, which is in place to ensure that providers' judgments are based strictly on the health interests of their patients and are not influenced by undue financial incentives.
The specific allegations accused Assure's founder Preston Parsons and Denver-based neurosurgeon Dr. Brent Kimball, among others, of manipulating financial transactions to conceal kickbacks. For instance, Dr. Kimball reportedly channeled kickbacks through a convoluted series of transfers involving James Mathew McAlpin, a California businessman, and various companies. "Doctors' decisions about which services to use when providing care to patients should never be tainted by how much money the doctor can make from kickbacks," Acting U.S. Attorney Matt Kirsch stated, as per U.S. Department of Justice, reinforcing the importance of integrity in healthcare decision-making.
The financial details of the settlement include Assure paying $1.008 million, Dr. Kimball $650,000, Preston Parsons $225,000, and James McAlpin $125,000. It is noteworthy that Parsons' amount is based upon his limited ability to pay, a financial condition thoroughly assessed during the investigation. Under the qui tam provisions of the False Claims Act, the whistleblower in this case, identified as Mr. Mathis, will receive an 18% share of the settlement proceeds. According to the U.S. Department of Justice, these "resolutions obtained in this matter were a result of a coordinated effort," involving multiple agencies, such as the Medicaid Fraud Control Unit of the Colorado Attorney General's Office and HHS-OIG.