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Austin Emergency Center Settles for $429,231 Over Alleged COVID-19 Test Billing Fraud Claims

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Published on November 25, 2025
Austin Emergency Center Settles for $429,231 Over Alleged COVID-19 Test Billing Fraud ClaimsSource: Google Street View

Austin Emergency Center and its affiliates have agreed to pay the United States a sum of $429,231 to settle claims that they engaged in billing fraud. As reported by the U.S. Department of Justice, the settlement pertains to allegations of inflating charges for COVID-19 tests and up-coding evaluation and management services related to drive-through COVID-19 screenings.

The claims in question date from June 18, 2020, through April 2, 2021, during which the Austin Emergency Center is alleged to have billed the Federal Employees Health Benefit Program (FEHBP) more than it charged cash-paying patients for certain COVID-19 diagnostic tests. Additionally, the healthcare provider is accused of having up-coded services for a period starting April 13, 2020, ending on the same date. "Those who have used or plan to use healthcare as a means to unlawfully enrich themselves should take note that the Department of Justice is actively looking for opportunities to recover stolen pandemic-era funds on behalf of the American people," U.S. Attorney Justin R. Simmons stated, as per U.S. Department of Justice, emphasizing the gravity of the allegations and the commitment to address them.

The investigation into the Austin Emergency Center was spearheaded by the Office of Personnel Management’s Office of the Inspector General (OIG), with strong words directed at those who would exploit public health emergencies for profit. Special Agent in Charge Derek M. Holt highlighted the significance of holding providers accountable, saying, "During a public health emergency, providers exploited federal employees’ health benefits for profit at the taxpayers' expense," as obtained by the U.S. Department of Justice.