Oklahoma Chiropractic Clinic, Owner, and Referring Physicians Pay $465,000 to Settle Federal False Claims Act and Kickback Allegations

OKLAHOMA CITY – Croas 1 LLC d/b/a Chiropractic Associates (“Chiropractic Associates”) and Scott Kirkpatrick, D.C. (“Dr. Kirkpatrick”), paid $365,000 to resolve allegations that they wrongfully paid physicians to induce referrals of durable medical equipment (“DME”), resulting in the submission of false claims to the Medicare program, announced United States Attorney Robert J. Troester. In separate agreements Cash Biddle, D.O. (“Dr. Biddle”), and Chad Keeney, D.O. (“Dr. Keeney”), each paid $50,000 to resolve allegations they received remuneration from Chiropractic Associates and/or Dr. Kirkpatrick for the purpose of inducing referrals of Medicare DME orders.    

Chiropractic Associates was an Oklahoma limited liability company that provided chiropractic, medical, and DME services in Ponca City, Oklahoma. Dr. Kirkpatrick is a chiropractic physician licensed to practice in the State of Oklahoma and was the sole member of Chiropractic Associates. Dr. Biddle and Dr. Keeney are osteopathic physicians licensed to practice in the State of Oklahoma.

The United States alleges that from October 2017 through July 2021, Chiropractic Associates and Dr. Kirkpatrick violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b (“AKS”) and/or the Physician Self-Referral Law (commonly referred to as the “Stark Law”) by paying remuneration to referring providers for the purpose of inducing referrals of Medicare DME orders. The United States also alleges that Dr. Biddle and Dr. Keeney received such remuneration at certain times.

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a DME supplier from billing Medicare for certain services referred by physicians with whom the DME supplier has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients. Claims submitted under the Anti-Kickback Statute and the Stark Law violate the False Claims Act.

To resolve these allegations, Chiropractic Associates and Dr. Kirkpatrick paid $365,000 to the United States, and Dr. Biddle and Dr. Keeney each paid $50,000.

In reaching this settlement, Chiropractic Associates, Dr. Kirkpatrick, Dr. Biddle, and Dr. Keeney did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreements allow the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.

Assistant U.S. Attorneys Amanda R. Johnson and Ronald R. Gallegos prosecuted the case. Investigative assistance was provided by HHS-OIG and HHS-OIG Office of Audit Services.