Gamma Healthcare Settles for $13.6 Million Over False Claims Allegations: Owners to Face 15-Year Exclusion from Federal Healthcare Programs

Gamma Healthcare’s Owners Resolve Allegations of False Claims Act

Gamma Healthcare has agreed to pay $13.6 million to settle allegations of violating the False Claims Act, announced by the Justice Department. The allegations state that they submitted claims to Medicare for polymerase chain reaction urinalysis laboratory tests that were not ordered by healthcare providers and were deemed medically unnecessary.

As part of the settlement agreement, Gamma Healthcare owners Jerry W. Murphy and Jerrod W. Murphy have agreed to a 15-year exclusion from participating in federal health care programs. This means they will be prohibited from receiving payments or benefits from these programs for the specified duration.

The Justice Department emphasized the importance of ensuring compliance with healthcare regulations to protect the integrity of government healthcare programs. In a statement, they said that “healthcare fraud undermines public trust in our healthcare system and diverts resources away from patients who need them.”

According to Bloomberg Law Automation, this information serves as a reminder of the consequences that can result from healthcare fraud and the importance of adhering to regulations to maintain the trust and efficiency of healthcare systems. It is crucial for healthcare providers and owners to understand their obligations under regulatory laws and take steps to ensure compliance at all times.

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