A Frederick oncology practice and its owner agreed this week to pay $1.45 million to the federal government to resolve allegations that they improperly billed Medicare, Medicaid, and the U.S. Department of Veterans Affairs for chemotherapy drugs. Prosecutors say the claims sought reimbursement for medications the practice did not purchase, drugs supplied at no cost through charitable programs, and treatments that were billed even though they were never administered. The agreement settles civil claims under the False Claims Act and, by itself, does not determine liability.
As reported by MoCo Show, Progressive Oncology & Hematology LLC and its owner and sole provider, Dr. Mouhamad Bazzi, settled an investigation by the U.S. Attorney’s Office for the District of Maryland, the HHS Office of Inspector General and the VA Office of Inspector General. “Seeking reimbursement for chemotherapy drugs that were not paid for or not administered by the practice or this doctor is simply intolerable,” U.S. Attorney Kelly O. Hayes said in a statement.
How prosecutors say the billing worked
Prosecutors allege the practice sought reimbursement for chemotherapy drugs it never bought, including medications supplied at no cost through charitable organizations or patient grant programs. Authorities also say staff drew doses for multiple patients from single-use vials but billed as if each patient received an entire vial, and that claims were submitted for prescribed drugs that were never actually administered. Those allegations are detailed in reporting by MoCo Show.
Enforcement in Maryland
Federal scrutiny of healthcare billing in Maryland has been active in recent years. In a separate case, a different Frederick practice agreed in 2023 to pay more than $850,000 to the United States to resolve alleged improper Medicare billing, according to a press release from the U.S. Attorney’s Office, District of Maryland.
Legal note
Settlements under the False Claims Act typically resolve civil allegations and require repayment without an admission of guilt, although they can still trigger administrative sanctions. The HHS Office of Inspector General has the authority to exclude individuals or entities from federally funded health programs, a penalty that bars an excluded provider from receiving Medicare or Medicaid payments and can expose employers who hire excluded persons to civil monetary penalties. More information is available through the HHS-OIG Exclusions Program.
The U.S. Attorney’s Office said the settlement resolves allegations only and that there has been no determination of liability. Prosecutors said the agreement recovers funds for federal programs and reflects continuing scrutiny of oncology billing practices.
