In a striking development underscoring the importance of medical ethics and the law, a set of physicians and medical practices in Missouri and Texas have agreed to pay more than half a million dollars to settle allegations of receiving kickbacks for referring patients for laboratory testing.

Dr. Imran Chishti, his medical practice C Care LLC based in Chesterfield, Missouri; Dr. Shamim Justin Badiyan from Frisco, Texas, and Psych Care Consultants LLC, located in St. Louis, Missouri, have collectively agreed to pay $525,610. These payments aim to resolve the allegations under the False Claims Act that these entities received illegal kickbacks, contravening the Anti-Kickback Statute. In return, they referred patients for laboratory tests.

In an agreement with the Department of Justice, the accused parties have pledged cooperation with ongoing investigations and litigations targeting other alleged scheme participants.

Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, emphasized the need for objectivity in medical decisions. He stated, “The prohibition against paying or receiving kickbacks is an important safeguard for ensuring the objectivity of medical decisions that affect federal health care beneficiaries.” He also assured that they would continue to pursue those who knowingly violate the law and compromise the integrity of the federal health care system.

The Anti-Kickback Statute, the legislation at the heart of these allegations, outlaws offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded health care programs. The purpose of this statute is to prevent medical providers’ judgments from being influenced by improper financial incentives, ensuring they prioritize their patients’ best interests.

This settlement addresses allegations that Dr. Chishti, Badiyan, and Psych Care Consultants received kickbacks in return for making referrals to laboratories in New Jersey, Texas, and Florida.

According to the details of the case, Dr. Chishti and C Care agreed to pay $125,504 to resolve two allegations. These include allegations that C Care received thousands of dollars in payments from purported management service organizations, Infinity Nine Health Group MSO LLC (Infinity) and Alari Group LLC (Alari), in exchange for Dr. Chishti ordering laboratory tests from various clinical laboratories.

Dr. Badiyan has agreed to pay $182,676 to resolve allegations that he received thousands of dollars in payments from a purported MSO named Avior Group LLC (Avior) in return for ordering laboratory tests from Genesis Reference Laboratories LLC (Genesis) and RDx Bioscience Inc. (RDx).

Psych Care Consultants has resolved to pay $217,430 to settle allegations that it received thousands of dollars in payments from Alari in return for ordering laboratory tests from Genesis and InHealth Diagnostic LLC (InHealth).

Commenting on the matter, U.S. Attorney Philip R. Sellinger for the District of New Jersey said, “Kickbacks can undermine the integrity of our health care system. Patients should be able to count on their doctors ordering tests and recommending treatment based on what is best for them, and not because they are receiving payments on the side.”

In concluding remarks, Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) stressed that participants in the federal health care system are expected to adhere to laws meant to preserve program funds and the provision of quality services to patients.

With cases such as these in the spotlight, it is clear that maintaining the integrity of our health care system continues to be a top priority for regulators and law enforcement alike.