United States Reaches Agreement With Former York County Chiropractor In Civil False Claims Act Suit

HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has entered into a Consent Decree with former chiropractor Kurt Bauer, age 62, of York, PA, to resolve a suit the United States filed alleging that Bauer remained involved in the management of a Medicare provider’s business despite his exclusion by the U.S. Department of Health and Human Services, in violation of the False Claims Act. 

United States Attorney Peter Smith announced today that the resolution was accepted by U.S. District Court Chief Judge Christopher C. Conner. 

The civil Complaint filed by the United States alleged that Bauer was the former owner of Leader Heights Healthcare, a York County-based chiropractic and primary care provider that accepted Medicare patients.  The U.S. Department of Health and Human Services (HHS) excluded Bauer from participating in federal health care programs in 2008, which had the practical effect of precluding his employment at Leader Heights in any capacity. 

Despite the exclusion and after falsely informing Medicare that he had “[r]etired,” Bauer allegedly retained ownership of Leader Heights until 2009 and continued to be involved in the management and administration of Leader Heights until he learned of the government’s investigation in 2013.  During this period of time, Leader Heights allegedly submitted thousands of claims to Medicare for reimbursement for several million dollars.  The government contends that, because of Bauer’s involvement in the management and administration of Leader Heights during his exclusion, Bauer knowingly caused the submission of false claims to Medicare that improperly sought reimbursement for the services he provided.

The Consent Decree resolves the allegations in the Complaint, and requires Bauer to:

• Make payments over the next five years to the United States totaling approximately $30,000.

• Consent to a renewed exclusion from federal health care programs for the next 25 years.

• Make bi-annual certifications to the U.S. Attorney’s Office for the next 5 years, under penalty of perjury, certifying that he is complying with his renewed exclusion and the pertinent guidance from HHS.

This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the Health Care Fraud Unit of the U.S. Attorney’s Office.  The matter was handled by Assistant U.S. Attorney Anthony Scicchitano for the U.S. Attorney’s Office.

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