CityMD Ordered to Pay $6.6 Million for Submitting False Claims to Medicare

May 8, 2018

CityMD, a popular chain of 88 urgent care centers mostly in the New York metropolitan area, has agreed to pay $6.6 million for submitting false claims to Medicare, according to the Manhattan U.S. Attorney’s Office.

The payment settles a civil fraud lawsuit brought by a whistleblower and the Manhattan U.S. Attorney’s Office.

CityMD is accused of improperly billing Medicare at a significant cost to taxpayers.

The settlement is a way to hold CityMD accountable both through the significant monetary payment and the detailed admissions made by CityMD.

As part of the settlement, CityMD apparently admitted it tricked Medicare by billing the federal program for lengthier and more complex procedures than its doctors actually performed.

The urgent care centers also confessed to billing Medicare for services performed by physicians not credentialed with the federal program.

The Manhattan U.S. Attorney’s Office joined a whistleblower’s False Claims Act lawsuit that had been filed under seal until the settlement was reached.

Being accused of collecting illegitimate healthcare funds from the federal government is a serious offense, and if this is proven in court, you could be facing pretty severe consequences. Medicare fraud is punished much more severely now than ever before. Punishments for this type of fraud generally stem from the federal sentencing guidelines. Depending on the offense, penalties can include maximum sentences ranging from 6 months to decades in prison, along with hefty fines. Moreover, restitution payments for wrongfully obtained funds will be ordered to reimburse the federal government.

If you are facing a Medicare fraud charge, you need to secure legal help right away. Like any other white collar crime, Medicare fraud cases are complex. Our Medicare Fraud Defense Attorneys at Whittel & Melton can offer guidance on how to protect yourself from Medicare fraud allegations and the laundry list of punishments that come along with it. Call our office today at 866-608-5529 or contact us online to request a free consultation to protect your reputation.