United States Attorney Matthew D. Krueger announced that Center for Pain Management, S.C. (“CPM”), and its owner, Dr. Nosheen Hasan, agreed to pay at least $1.35 million to resolve allegations that they received kickbacks from a urine drug testing laboratory in exchange for ordering medically unnecessary tests for Medicare and Medicaid patients. CPM and Dr. Hasan also agreed to future contingent payments for the next five years, with the amount of the payments based on specified financial criteria. CPM and Dr. Hasan separately entered into an Integrity Agreement with the Office of Inspector General, Department of Health and Human Services (“HHS-OIG”), to monitor ongoing compliance with applicable Medicare and Medicaid rules. As alleged in the Complaint-in-Intervention filed by the United States in the case, CPM and Dr. Hasan received illegal remuneration from Midwest Laboratory Sales & Consulting, LLC, and its owner, Matthew Samuelson, in exchange for ordering urine drug tests performed by Midwest, in violation of the Anti-Kickback Statute and the False Claims Act. The government further alleged that CPM and Dr. Hasan ordered these tests despite knowing that they were not medically necessary. Over the course of the more than five-year-long arrangement, CPM and Dr. Hasan ordered thousands of unnecessary tests that were paid for by Medicare and Medicaid and received over $1 million in illegal kickbacks from Midwest for ordering the tests. The government previously resolved its claims against Midwest and Mr. Samuelson, who admitted that they violated the False Claims Act and Anti-Kickback Statute.
