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EEG testing and private investment companies pay $15.3 million to resolve kickback and false billing allegations

Press releases may be edited for formatting or style | July 22, 2021 Business Affairs Insurance
Two Texas companies have agreed to pay a combined $15.3 million to resolve allegations of kickbacks and other misconduct resulting in the submission of false claims to federal health care programs.

According to the settlement, Alliance Family of Companies LLC (Alliance), a national electroencephalography (EEG) testing company based in Texas, will pay $13.5 million to resolve allegations that it submitted or caused to be submitted false claims to federal health care programs that resulted from kickbacks to referring physicians or that sought payment for work not performed or for which only a lower level of reimbursement was justified. The settlement also resolves allegations against Texas-based private investment company Ancor Holdings LP (Ancor), which will pay over $1.8 million for causing false billings resulting from the kickback scheme through its management agreement with Alliance.

“Kickbacks and inflated billings result in the misuse of critical federal health care program funds,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “The Department of Justice will collaborate with our agency partners to protect federal health care programs by pursuing those who knowingly claim public funds to which they are not entitled.”

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“This settlement should put health care providers on notice that we will hold accountable those who seek to profit by pursuing kickbacks and other improper billing schemes,” said Acting U.S. Attorney Jennifer B. Lowery for the Southern District of Texas. “This office, in coordination with its law enforcement partners, will use all available resources to pursue those who defraud these federal programs and to protect our nation’s health care system.”

“This settlement is an example of strong federal partnerships working to protect federal health care programs that are relied upon by so many beneficiaries,” said Special Agent in Charge Miranda L. Bennett of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Dallas Region. “We will continue working with our law enforcement partners to investigate kickback schemes that undermine the integrity of the Medicare and Medicaid programs.”

“As the investigative arm of the Department of Defense Inspector General, the Defense Criminal Investigative Service is dedicated to protecting the integrity of Department of Defense programs such as TRICARE, the health care system for our service members, retirees, and their families,” said Acting Special Agent in Charge Gregory P. Shilling of the Defense Criminal Investigative Service (DCIS) Southwest Field Office. “Today’s settlement highlights the teamwork with our federal and state partners in rooting out fraud to protect our critical program and preserve American taxpayer resources.”

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