US Medical Management, LLC (“USMM”) and VPA, PC (“VPA”), providers of home-based healthcare services, have agreed to pay the United States $8.5 million to resolve allegations that USMM and VPA submitted to the Medicare program claims for payment for laboratory and diagnostic testing services performed from January 1, 2010 through December 31, 2015, which were not reasonable and necessary for the diagnosis or treatment of an illness or injury. The United States contends that the payments USMM and VPA received in connection with these claims were overpayments. Under the alternate remedy provision of the False Claims Act, 31 U.S.C. §§ 3729-3733, this settlement resolves allegations that were raised in five lawsuits filed under the qui tam, or whistleblower, provisions of that law. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery. Although the United States has not intervened in any of the False Claims Act allegations, under the alternate remedy provision of that law, the first-to-file whistleblower in this case will receive $1.53 million of the settlement amount.
