Sandra J. Hairston United States Attorney | U.S. Attorney's Office for the Middle District of North Carolina
Substance Abuse Treatment Labs in Greensboro and its owner, Paul Fribush, have agreed to pay $850,000 to settle civil allegations of violating the False Claims Act. The charges involve billing North Carolina Medicaid for urine drug screening tests that were deemed medically unnecessary. This was announced by Acting U.S. Attorney Randall Galyon.
Authorities from the United States and the State of North Carolina alleged that between January 2018 and January 2022, Substance Abuse Treatment Labs and Fribush submitted false claims to Medicaid. These claims were for the highest level of urine drug testing reimbursement despite indications that the tests were not needed.
“Protecting taxpayer dollars used to provide medical benefits to those who need it most is essential to this Office’s mission,” stated Acting United States Attorney Randall Galyon. “We will continue to identify and hold accountable those providers that seek to enrich themselves off taxpayers through submitting such false claims. I am thankful for our partnership with the North Carolina Attorney General’s Office to assist us in this mission in pursuing justice on behalf of Medicaid.”
Kelly Blackmon, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), emphasized the impact of these actions: “Submitting false claims to Medicaid undermines the program’s integrity and wastes valuable taxpayer dollars. HHS-OIG remains dedicated to safeguarding the integrity of Medicare and Medicaid and protecting the people these programs serve.”
The resolution was achieved through coordinated efforts among several entities including the U.S. Attorney’s Office for the Middle District of North Carolina, the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the U.S. Department of Health and Human Services' Office of Counsel to the Inspector General. Representation for the United States was provided by Assistant United States Attorney Rebecca Mayer and Special Assistant United States Attorney Matthew Petracca.
It is important to note that while these claims have been settled, they remain allegations with no determination of liability.
