New Jersey surgery center owner to pay $863K in alleged fraud case — 5 insights

A New Jersey man will fulfill his end of a settlement and pay $718,000 to New Jersey and $145,000 in attorney's fees after he made several legal protests, Law360 reports.

What you should know:

1. Harshad Patel, owner of Edison, N.J.-based clinics AP Surgery Center and AP Diagnostic Imaging, allegedly underreported his facilities' billing for six years to reduce his contributions to the state's Health Care Subsidy Fund, which collects 2.95 percent of gross revenues from New Jersey healthcare facilities. He was ordered by a two-judge panel to fulfill his end of a settlement that was legally agreed to last year.

2. Mr. Patel struck a deal in February 2018 to reduce the $2.9 million in alleged fraud damages and fees to $718,000. He and his attorney at the time agreed to the settlement.

3. Five days before the payment was due in May 2018, Mr. Patel's attorney withdrew from the case because "significant differences have arisen between the firm and defendants and … an irrevocable breach has developed."

4. Mr. Patel wired the money to the state the same day his counsel withdrew, but took issue with the settlement. He said he never agreed to the settlement, and then attempted to void the settlement because of the disagreement with his lawyer.

5. The two-judge panel rejected all Mr. Patel's arguments.

More articles on surgery centers:
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