The CityMD saga of Covid-19 related billing controversies continues, with the urgent care chain now agreeing to a multi-million-dollar settlement. The company will repay nearly $7 million to patients who were illegally billed for Covid-19 tests. These tests should have been free during the state's public health emergency, as reported by Crain's New York. The unlawful charges spanned from March 2020 through November 2022, a time when testing accessibility was both critical and strained.
CityMD's agreement includes the cancellation of an additional $7 million in medical debt for 87,000 patients and a minor penalty to the state. Attorney General Letitia James stated that CityMD will also face a $5,000 fee for any future violations. These financial reconciliations arrive not long after an earlier entanglement, wherein CityMD agreed to pay a hefty $12 million for submitting false claims to a federal program intended to reimburse the costs of testing uninsured individuals, according to reporting by the U.S. Department of Justice. This, despite some of those individuals having insurance coverage at the time of testing.
The ramifications of CityMD's actions have drawn significant attention to their practices—not just for people directly affected by the charges but also in the context of broader public health funding and fraud. The company did receive some credit for its cooperative efforts during the investigation, including the hiring of a third-party to help ascertain the financial damage done to the government's Covid-19 Uninsured Program.
"The Uninsured Program provided critical financial support for COVID-19 related testing and treatment for uninsured Americans during the height of the pandemic," said Principal Deputy Assistant Attorney General Brian M. Boynton to the U.S. Department of Justice. This sentiment was echoed by U.S. Attorney Philip R. Sellinger, who condemned the misuse of emergency funding, stating that the settlement would ensure the recovery of improperly obtained funds. Meanwhile, whistleblower Stephen Kitzinger stands to receive over $2 million for his role in bringing the issue to light.
The repercussions for CityMD extend beyond financial reparation, certainly a blight on its reputation during a time where trust in healthcare institutions is paramount. While the pipeline for Covid-19 relief funds may be compromised by instances of fraud and misuse, the Justice Department’s task force and related bodies remain vigilant. They continue to urge the public to report any suspected exploitation of pandemic-related programs through appropriate channels.
