In a recent turn of events, Las Vegas-based RST-Sanexas, Inc. and its principal owners, Richard Sorgnard, Lisa Sorgnard, and Morhea Sorgnard, have agreed to fork over $1.5 million to settle allegations of foul play involving Medicare billing and the acceptance of kickbacks. The settlement addresses accusations that they caused the submission of false claims for services not medically necessary or those skewed by illegal kickbacks. United States Attorney David Metcalf stated that this action is a continuation of efforts to hold accountable those who improperly bill for medical devices and treatments, as reported by the Justice Department.
Amidst the scrutiny, the Sanexas electric stimulation devices were specifically marketed for uses not approved by the FDA, such as, among others, to supposedly regrow nerves and improve overall nerve health. These contentious marketing strategies led providers to claim these unvalidated treatments on Medicare, significantly inflating healthcare costs. "Accurately billing for services provided to Medicare enrollees is required of all health care providers participating in the program," declared Maureen R. Dixon of the HHS Office of Inspector General, revealing their commitment to thoroughly investigate and pursue alleged billing malpractices, according to the Justice Department's announcement.
The company's transgressions also extended to providing perks for referrals. Under scrutiny were volume-based discounts to distributorships and commissions tied directly to the purchase volume of Sanexas devices, acts allegedly in direct violation of the Anti-Kickback Statute. Furthermore, the company is said to have received commissions from a diagnostic laboratory in exchange for referrals connected to Sanexas treatments, an apparent quid pro quo that US laws expressly forbid.
This hefty settlement ties up a part of the lawsuits filed by whistleblowers under the False Claims Act's provisions, enabling private citizens to sue on the government's behalf. These whistleblowers might justly receive a portion of the recovered funds, as well as possible shares from future settlements with other defendants named in the lawsuit. The collaborative effort to bring this case to a close signifies a larger governmental determination to strictly combat healthcare fraud, made evident by the invested coordination among the Justice Department's Civil Division, U.S. Attorney’s Offices in multiple districts, and the HHS Office of Inspector General, according to insights shared by the Justice Department.
The government encourages anyone aware of potential fraud, waste, abuse, or mismanagement in healthcare services to report their concerns.
