Two physicians, a laboratory CEO, and seven marketers have agreed to pay more than $6 million to settle allegations of a kickback scheme, the Justice Department said in a Sept. 8 news release.
What happened?
- Former True Health Diagnostics CEO Christopher Grottenthaler agreed to pay $4.25 million to resolve allegations that he arranged kickbacks to physicians in exchange for laboratory referrals.
- Mr. Grottenthaler allegedly continued True Health’s involvement in illegal MSO schemes even after receiving warnings that they could lead to prison time. The settlement also covers claims that he facilitated additional kickbacks disguised as consulting fees, processing fees and waivers of copays and deductibles.
- Two physicians were also implicated. Hong Davis, MD, of Plano, Texas, agreed to pay $124,627 for accepting kickbacks through MSOs in return for test referrals. Elizabeth Seymour, MD, of Denton, Texas, agreed to pay $234,215 for similar allegations.
- Seven marketers involved in the alleged kickback schemes also agreed to pay nearly $1.46 million collectively.
- The Department of Justice said these settlements are part of a broader effort that has recovered more than $59 million from laboratory kickback cases involving 50 physicians.
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