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Home » DOJ settles CityMD Covid fraud allegations for $12 million

DOJ settles CityMD Covid fraud allegations for $12 million

The Department of Justice (DOJ) has reached a settlement with urgent care provider CityMD over allegations of Covid-19 fraud, resulting in a $12 million payout. The settlement resolves claims that CityMD submitted false claims to federal healthcare programs for Covid-19 testing and related services during the pandemic.

CityMD, which operates urgent care centers in New York, New Jersey, and Washington state, was accused of engaging in fraudulent billing practices for Covid-19 testing and related services. The DOJ alleged that CityMD knowingly submitted claims for services that were not medically necessary or eligible for reimbursement under federal healthcare programs.

According to the DOJ, CityMD billed federal healthcare programs for Covid-19 testing and related services that were not ordered by healthcare providers or were performed without a valid medical reason. The settlement also resolves allegations that CityMD submitted claims for services that were not performed as billed, or were performed by unqualified personnel.

As part of the settlement, CityMD has agreed to pay $12 million to resolve the allegations of fraud. In addition to the monetary settlement, CityMD has also agreed to implement compliance measures to prevent future fraud and abuse in its billing practices.

The settlement with CityMD is part of the DOJ’s ongoing efforts to combat Covid-19 fraud and abuse in healthcare. The DOJ has been actively investigating and prosecuting cases of fraud related to the Covid-19 pandemic, including fraudulent billing practices, price gouging, and the sale of counterfeit or substandard medical products.

Healthcare fraud during the pandemic has not only cost taxpayers millions of dollars but has also put patients at risk by providing them with unnecessary or substandard medical services. The DOJ’s settlement with CityMD sends a clear message that fraudulent billing practices will not be tolerated, especially during a public health crisis.

The settlement with CityMD serves as a reminder to healthcare providers to ensure that their billing practices comply with federal healthcare regulations and that services are medically necessary and performed by qualified personnel. Failure to do so can result in costly settlements, legal action, and damage to a provider’s reputation.

Overall, the settlement with CityMD is a significant step in holding healthcare providers accountable for fraudulent billing practices and protecting federal healthcare programs from abuse. It underscores the importance of maintaining integrity and transparency in healthcare billing practices, particularly during a global health crisis like the Covid-19 pandemic.