Remote patient monitoring firm settles lawsuit over false Medicare claims

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Theodore S. Hertzberg United States Attorney for the Northern District of Georgia | Department of Justice

Remote patient monitoring firm settles lawsuit over false Medicare claims

Health Wealth Safe, Inc. and Dr. Subodh Agrawal have agreed to pay $1.29 million to settle allegations of submitting false claims to Medicare. The settlement resolves accusations that the company knowingly billed for non-reimbursable remote physiologic monitoring (RPM) services.

U.S. Attorney Theodore S. Hertzberg stated, “Knowingly billing Medicare for services that do not meet Medicare’s requirements is a fraud against taxpayers.” He emphasized the office's commitment to enforcing the False Claims Act to recover improper government payments.

Kelly Blackmon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), highlighted healthcare professionals' responsibility: “Healthcare professionals have a sworn duty to prioritize patient health and to ensure all services billed to the federal government are fully compliant with program requirements.”

The investigation began after former employees filed a whistleblower lawsuit under the False Claims Act, known as a qui tam suit. This federal law holds individuals accountable for submitting false claims by imposing treble damages and civil penalties.

The United States alleged that under Dr. Agrawal's direction, Health Wealth submitted claims for RPM services without providing devices meeting Medicare’s automatic reporting requirements between September 2019 and January 2021.

The lawsuit was filed in the U.S. District Court for the Northern District of Georgia under United States ex rel. Chavous v. Health Wealth Safe, Inc., No. 1:22-cv-02553. As part of the settlement, the relator will receive $238,650 plus attorney’s fees.

Assistant U.S. Attorney Anthony DeCinque facilitated reaching this civil settlement after an investigation by both the U.S. Attorney’s Office for the Northern District of Georgia and HHS-OIG.

It is important to note that these resolved claims are allegations only, with no determination of liability made.

For more information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6185 or visit http://www.justice.gov/usao-ndga.