Greenwich Doctor Pays $300,000 To Settle Allegations Under The False Claims Act

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JUN XU, M.D., and his professional corporation, REHABILITATON MEDICINE AND ACUPUNCTURE CENTER M.D., LLC., of Riverside, Conn., have entered into a civil settlement with the government in which they will pay $300,000 to resolve allegations that XU violated the False Claims Act.

Acting U.S. Attorney Daly explained that the allegations against Dr. Xu involve fraudulent billing to Medicare for physical therapy services.  The government alleges that Dr. Xu submitted claims to Medicare for physical therapy services that were medically unnecessary and/or not performed in accordance with Medicare requirements.  Specifically, the government alleges that Dr. Xu billed Medicare for one-on-one physical therapy services when the physical therapist was, in fact, providing group therapy, and that he submitted claims to Medicare for therapy services that were rendered by massage therapists.

Medicare regulations explicitly state “the services of…massage therapists…may not be billed as therapy services.” 

To resolve their liability under the False Claims Act, Dr. Xu and his professional corporation paid $300,000 in order to reimburse the Medicare programs for conduct occurring during the time period January 1, 2007 through December 31, 2009.

“Health care providers that overcharge Medicare drain critical funds from the Medicare program and increase health care costs,” Acting U.S. Attorney Daly stated.  “The U.S. Attorney’s office is committed to vigorously pursuing physicians and other health care providers who submit fraudulent claims to federal health care programs.  Providers who submit false claims to the government face serious monetary and administrative sanctions.”

Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.

In entering into the settlement agreement, Dr. Xu and his professional corporation did not admit liability.

This case was investigated by the Office of Inspector General for the Department of Health and Human Services.  The case was prosecuted by Assistant United States Attorney Anne F. Thidemann, with the assistance of Auditor Kevin A. Saunders.

Acting U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov