Paksn Inc. and six skilled nursing facilities have agreed to a consent judgement of $45.6 million to resolve allegations of paying kickbacks for an increase in false claims to Medicare.
A press release by the U.S. Department of Justice revealed that from 2009 to 2021, the SNF defendants, under Thekkek and Paksn's direction, systematically entered into medical directorship agreements with physicians that were actually vehicles for the payment of kickbacks to induce physicians to refer patients to the six SNFs. The Anti-Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by federally funded health care programs such as Medicare and Medicaid.
The press release detailed how Paksn has agreed to a $45,645,327.25 consent judgment and $385,000 scheduled payments over the next five years due based on a whistleblower complaint filed in 2015 by Trilochan Singh under the qui tam provisions of the False Claims Act. As part of their agreement, they also entered into a five-year corporate integrity agreement with HHS-OIG requiring an Independent Review Organization to review their physician relationships.
Principal Deputy Assistant Attorney General Brian M. Boynton expressed his concern about these practices stating: "Kickbacks can impair the independence of physician decision-making and waste taxpayer dollars," said Boynton."The department is committed to preventing illegal financial relationships that undermine the integrity of our public health care programs."
Adding onto Boynton's sentiment was U.S. Attorney Martin Estrada for the Central District of California who said: "The administrators and beneficiaries of the Medicare Program expect that providers will make decisions based on sound medical judgment, not their personal self-interest" said Estrada."As this case demonstrates, our office will take decisive action to address allegations that medical providers are paying or receiving improper financial benefits that could impact care provided to patients."
