Iowa surgeon faces $2.4M in alleged inflated Medicare reimbursements

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A Des Moines, Iowa, plastic surgeon has been named in a federal False Claims Act complaint alleging he submitted fraudulent invoices to Medicare to inflate reimbursements for skin substitute products used to treat wounds following Mohs surgery, according June 23 court documents

Eugene Cherny, MD, owner of Heartland Plastic and Reconstructive Surgery, allegedly obtained two invoices from a skin substitute distributor for each product he purchased, one reflecting the inflated list price he never paid and one reflecting the actual lower price, and submitted only the falsified higher-priced invoices when Medicare requested documentation. 

The government alleges Dr. Cherny was aware of the scheme as early as July 2020 and that he tracked his profit “spread” on skin substitute products in a logbook, refusing to use a product on Medicare patients unless it yielded a significant profit. In 2021, Dr. Cherny was the highest-paid Medicare Part B provider of skin substitute products nationwide, receiving $13.1 million in reimbursements that year alone.

The government seeks to recover more than $2.4 million in allegedly fraudulent reimbursements, plus treble damages and civil penalties under the False Claims Act.

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