Orthopedic surgeon & 5 others agree to $1.5M kickback settlement

An orthopedic surgeon and others affiliated with an Orlando, Fla., skilled nursing facility agreed to pay $1.5 million to resolve allegations of a patient referral and kickback scheme, according to the U.S. Attorney's Office of the Middle District of Florida.

The key details to know:

1. Orthopedic surgeon Kenneth Krumins, MD, was allegedly paid through a false "medical director" agreement where he illegally referred Medicare and Tricare patients for rehabilitation services at Orlando-based Conway Lakes. Dr. Krumins additionally resolved allegations he had participated in a similar scheme involving a home health agency.

2. The following parties also agreed to pay the $1.5 million settlement:

• Conway Lakes
• Melbourne, Fla.-based C lear Choice Health Care (Conway Lakes' management company)
• Former Conway Lakes Administrator Matthew File
• Clear Choice President Jeffrey Cleveland
• Clear Choice Senior Vice President Geoffrey Fraser

3. Federal prosecutors alleged those involved in the scheme violated the Stark Law and the Anti-Kickback Statute.

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