Denver neuromonitoring company settles kickback allegations for over $2 million

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Denver neuromonitoring company settles kickback allegations for over $2 million

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United States Attorney Cole Finegan | U.S. Department of Justice

The U.S. Attorney's Office for the District of Colorado has announced settlements exceeding $2 million involving Denver-based Assure Holdings Corp., its subsidiary Assure Neuromonitoring LLC, and several individuals to resolve allegations of violating the False Claims Act through kickbacks related to neuromonitoring services.

According to the allegations, Assure engaged in illegal activities by offering remuneration to surgeons via joint ventures to induce them to order intraoperative neuromonitoring services. This practice allegedly led to claims being submitted for payment by federally funded healthcare programs, such as Medicare and Medicaid.

The settlements involve payments from multiple parties: Assure has agreed to pay $1.008 million, Dr. Brent Kimball will pay $650,000, Preston Parsons will contribute $225,000 based on his financial condition, and James Mathew McAlpin has paid $125,000.

Acting U.S. Attorney Matt Kirsch stated, "Doctors’ decisions about which services to use when providing care to patients should never be tainted by how much money the doctor can make from kickbacks." Special Agent in Charge Linda T. Hanley emphasized the importance of accountability in maintaining public trust and safeguarding federal health care programs.

These settlements also address claims under the qui tam provisions of the False Claims Act. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Mr. Mathis will receive 18% of the settlement proceeds.

The investigation was conducted with cooperation between various agencies including the U.S. Attorney’s Office for the District of Colorado and HHS-OIG. Assistant United States Attorney Jasand Mock led the investigation.

It is important to note that these settlements are not an admission of liability but rather a resolution of allegations made against those involved.

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