United States Obtains $140 Million in False Claims Act Judgments against South Carolina Pain Management Clinics, Drug Testing Labs, and Substance Abuse Counseling Center

 

 Acting United States Attorney M. Rhett DeHart announced today that the United States District Court for the District of South Carolina has entered $140 million in default judgements against a group of South Carolina pain management clinics, drug testing laboratories, and a substance abuse counseling center.  This combined judgment is one of the largest ever False Claims Act judgments in the District of South Carolina. 

Specifically, a default judgment entered on September 2, 2021, for the United States against Oaktree Medical Centre, P.C., FirstChoice Healthcare, P.C., Labsource, LLC, Pain Management Associates of the Carolinas, LLC, and Pain Management Associates of North Carolina, P.C. totals $136,025,077.  It follows a July 20, 2020 default judgment in this matter in the amount of $4,269,084.78 against ProLab, LLC and ProCare Counseling Center, LLC.  The Court entered these judgments after these defendants failed to defend against the United States’ allegations.

In its Complaint, filed on May 31, 2019, the United States alleged the pain management clinics and drug testing laboratories – all of which were owned or operated by chiropractor Daniel McCollum – provided illegal financial incentives to doctors and mid-level providers to induce the referrals of urinary drug tests, in violation of the Stark Law and the Anti-Kickback Statute.  The United States also alleged the pain management clinics, laboratories, and a substance abuse counseling clinic billed federal healthcare programs for unnecessary urinary drug testing.  Finally, the United State alleged the pain management clinics billed or caused to be billed false claims for steroid injections, opioid prescriptions, and lidocaine ointment prescriptions because the injections and prescriptions were medically unnecessary and/or lacked a legitimate medical purpose.  

McCollum answered the United States’ Complaint and remains a party to the ongoing litigation.

Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services.  Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory.  The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services. 

“Improper financial relationships between health care providers and laboratories can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division.  “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”

“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney DeHart.  “For years, these companies used improper financial incentives to generate healthcare provider referrals.  This $140 million judgment is a cautionary tale of why health care fraud does not pay.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson, and Tracy Hawkins, former employees of pain management clinics owned or operated by McCollum.  Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. 

The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of South Carolina, with assistance from the Federal Bureau of Investigation, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Statement from Speaker Corey Johnson, Chair of Committee on Resiliency and Waterfronts Justin Brannan, Chair of Committee on Environmental Protection James F. Gennaro, and Chair of Committee on Transportation Ydanis Rodriguez

 

Re: Flooding from Hurricane Ida

  “What happened on Wednesday raises several urgent questions, including why we weren’t better prepared for an anticipated storm. The City Council will hold an oversight hearing on September 14, at 10 a.m. to get answers on the MTA and the City’s preparation and response to the catastrophic flooding from Hurricane Ida. We know climate change is an unavoidable factor at this point, so at the very least, we need an infallible plan to warn and protect New Yorkers for the storms to come.

The Council has been and continues to be committed to addressing the climate crisis. In 2019, we passed the Climate Mobilization Act, the most ambitious and innovative package of bills any major city has ever considered to combat the existential threat of climate change. We also put out a transit report, Let’s Go: A Case for Municipal Control and a Comprehensive Transportation Vision for the Five Boroughs, which highlighted the need for New York City to prioritize green infrastructure in transportation projects. In 2020, we went on to release a 189-page report, Securing Our Future: Strategies for New York City in the Fight Against Climate Change, outlining recommendations to aggressively fight this crisis.

That said, given the scope and urgency of the matter, there is always more to do, and clearly we must take these initiatives even further. Not only does the future of our City and planet depend on it, but the immediate impact on New Yorkers’ lives is at stake.”

Governor Hochul Announces New Requirements and Guidance for the Safe Reopening of New York Schools

 

Requirement for COVID-19 Testing for Teachers and other School Employees—with Opt-Out for Vaccinated—Passes Public Health and Health Planning Council; Read the Regulation Here and the DOH Determination Letter Here

Department of Health Releases New Guidance for K-12 School Reopening; Read Guidance Here

 Governor Kathy Hochul today announced that her strategy to reopen schools safely took a major leap forward on two fronts, demonstrating her administration's commitment to making the health and well-being of students, teachers, and families a top priority. Earlier today, the Public Health and Health Planning Council passed an emergency regulation and the Health Commissioner issued a determination requiring all teachers, administrators and other school employees to submit to weekly COVID-19 testing unless they show proof of vaccination, with either a CDC vaccine card or the Excelsior Pass.

The Governor also announced that the New York State Department of Health has finalized and released official guidance for classroom instruction. These new actions follow the Governor's announcement last week of a mask requirement for everyone in school buildings during instructional hours and extracurricular activities. The guidance prioritizes in-person learning and details recommendations and requirements for vaccinations, face masks, physical distancing, and testing to monitor potential transmission, among other areas. The guidance largely tracks with the CDC guidance which districts were advised to follow. It is also intended as a floor and schools have the flexibility to go beyond the guidance.    

"My top priority is to get children back to school and protect the environment so they can learn, and everyone is safe," Governor Hochul said. "On day one of my administration, I announced a series of bold back-to-school initiatives, including a universal mask requirement for anyone entering our schools. We are now issuing guidance to make sure our school staff are vaccinated or tested regularly for themselves and their families, our students, and our communities. Our children deserve to be safe and protected in schools, and I am doing everything in my power to guarantee that."

The emergency regulation, which authorizes the Commissioner to require weekly testing or proof of vaccine, will apply to all schools in New York State until it is no longer necessary as described in the language of the regulation.  

During a recent Zoom meeting, school officials, union leaders, and other education advocates asked for State public health professionals to provide additional clarity and guidance on school re-opening. Per the new guidance, schools should implement physical distancing to the extent possible within their structures but should not exclude students from in-person learning to meet a minimum distance requirement. Further, a distance of at least 3 feet is strongly recommended between all students and a distance of at least 6 feet is recommended between students and teachers/staff, and between teachers/staff who are not fully vaccinated. Students and drivers must wear masks on school buses, including on buses operated by public and private school systems, regardless of vaccination status, subject to applicable exclusions and exemptions.

State Department of Health Commissioner Howard Zucker said, "We need to get all of our children back in schools and in a safe environment which promotes healthy learning. While we continue to work with local school districts and local health departments, we listened to feedback from parents, teachers and education advocates who asked for additional statewide guidance on masks, vaccines, social distancing and testing and for recommendations on challenges like school bus safety and navigating high-risk sports and extracurricular activities." 

The Commissioner's determination for masking in schools, issued August 27th, applies to all indoor settings, including indoor sports and extracurricular activities. For indoor sports and extracurricular activities in which masking is not possible, such as swimming, a minimum distance of 6 feet must be maintained. Schools are encouraged to implement required screening testing for participants who are not fully vaccinated. 

Schools must have capacity and offer screening testing for any teachers and staff at least once a week. Schools must also have the capacity to provide diagnostic testing for any student, teacher, or staff member who is symptomatic or has been exposed to someone infected with COVID-19. There are a variety of options and significant funding to achieve this testing and schools should continue to work closely with their local Department of Health.

In addition to implementing the test-vaccine requirement, DOH recommends that all public school districts and non-public schools should support opportunities for students and staff to access COVID-19 vaccination clinics in collaboration with local health partners. The guidance continues the daily reporting requirement for school districts to ensure they are providing data to the NYS School COVID Report Card, another tool to share COVID-19 information with families and communities. 

For more information, please see the DOH school guidance here and the PHHPC regulation here.

TEAM BIAGGI CHECKING IN AFTER TROPICAL STORM IDA / REVISANDO SU BIENESTAR DESPUÉS DE LA TORMENTA IDA

 

Dear Community, 

I hope you and your loved ones are all doing well and staying safe after Tropical Storm Ida hit last night. Unfortunately, District 34 and surrounding areas suffered from record breaking rain and flooding. My heart goes out to everyone impacted by the storm, and I send my deepest condolences to the families and loved ones of those who lost their lives as a result of it. 

My office and I want to offer any assistance that we can provide at this time. Below are resources for both NYC and Westchester residents that may prove useful during this time. If you have lost power, experienced damaging flooding, or need any other assistance due to the tropical storm, please let us know here so that my office and I can properly assist you. 

NYC residents: 

• To report storm damage in your area: http://on.nyc.gov/report-damage.
• To report power outages: https://on.nyc.gov/3t9hahI.
• If you have any flooding or storm damage that you still need addressed, contact 311 immediately to report it.
• If you have not yet enrolled for Notify NYC’s emergency alerts, enroll here.
• Mass transportation continues to be limited and experiencing delays. 
• To find an open Red Cross shelter near you, visit this link. 
• For emergency assistance, call the NYC Red Cross chapter at 877-733-2767. 

Westchester residents: 

• To report power outages or gas and electrical service problems, call (800) 75-CONED.
• To report an electricity power outage, call (800) 572-1131 or check outages in your area here. 
• To check on major highway conditions across the county, visit here.
• Call the county police at (914) 864-7700 for the latest county parkway conditions. 
• To find an open Red Cross shelter near you, visit this link. 
• For emergency assistance, call the Westchester Red Cross chapter at 203-869-8444. 

As a reminder, Governor Kathy Hochul issued a State of Emergency for New York last night that remains in effect. Please continue to exercise caution and avoid all unnecessary travel at this time.

If you have any questions please feel free to contact me and my office at biaggi@nysenate.gov or by calling our office at 718-822-2049. 

With Gratitude, 

State Senator Alessandra Biaggi

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - SEPTEMBER 2, 2021

 

70% of Adults in New York Have Completed Vaccine Series

59,841 Vaccine Doses Administered Over Last 24 Hours

33 COVID-19 Deaths Statewide Yesterday 

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.

"As we address challenges and work to rebuild on several fronts, it's critically important that we double down on all the essential efforts and precautions we've been taking to beat back the virus," Governor Hochul said. "The Delta variant is a serious threat and we cannot let down our guard. If you still need to get your shot, please don't hesitate another day. The faster we get everyone vaccinated, the faster we can overcome the challenges of the pandemic and come back stronger than we were before."  

  

Today's data is summarized briefly below:

• Test Results Reported - 163,926
• Total Positive - 4,943
• Percent Positive - 3.02%
• 7-Day Average Percent Positive - 3.31%
• Patient Hospitalization - 2,319 (+34)
• Patients Newly Admitted - 354
• Patients in ICU - 499 (+6)
• Patients in ICU with Intubation - 255 (+5)
• Total Discharges - 193,390 (+277)
• New deaths reported by healthcare facilities through HERDS - 33
• Total deaths reported by healthcare facilities through HERDS -43,635

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.

• Total deaths reported to and compiled by the CDC - 55,642

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.

• Total vaccine doses administered - 23,788,396
• Total vaccine doses administered over past 24 hours - 59,841
• Total vaccine doses administered over past 7 days - 374,391
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 77.3%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 70.1%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 80.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 71.8%
• Percent of all New Yorkers with at least one vaccine dose - 65.2%
• Percent of all New Yorkers with completed vaccine series - 58.8%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 67.5%
• Percent of all New Yorkers with completed vaccine series (CDC) - 60.3%

The Ali Forney Center - Run the NYC Marathon for the Ali Forney Center

 

Didn't get a NYC Marathon slot in the drawing? Join the Ali Forney Center's Marathon Team to enter the race and fundraise in support of our LGBTQ youth. It is more important than ever that we continue to work to protect our youth by providing the supportive services necessary to help them thrive and prepare for independent living. APPLY BY SEPTEMBER 8TH Not a runner but still want to show your support? Check out our donation page to contribute, cheer on our team, and share with your friends. Questions? Call 212-400-0282 or click here. APPLY BY SEPTEMBER 8TH

Governor Hochul Signs Legislation Extending Virtual Public Meeting

 

Legislation (S.50001/A.40001) Allows New Yorkers to Participate in State and Local Government Meetings Virtually to Reduce the Risk of COVID-19 Spread; Helps People with Disabilities Participate in Their Government

 Early this morning, Governor Kathy Hochul signed legislation (S.50001/A.40001) extending virtual access to public meetings under New York State's Open Meetings Law, which allows New Yorkers to virtually participate in local government meetings during the COVID-19 pandemic. The legislation, which was initially implemented by Executive Order during last year's State of Emergency, allows state and local government meetings that are normally held in person to be held remotely instead, as long as the public has the ability to view or listen to the meeting and as long as the meeting is recorded and later transcribed. This statutory change will reduce the need for congregation at public meetings while the Delta variant is prevalent, while ensuring public business can continue.

"Let's be clear—the COVID-19 pandemic is not over, and I've heard from government officials across the state who are concerned about the inability of their constituents to access public meetings virtually," Governor Hochul said. "This commonsense legislation extends a privilege that not only helps New Yorkers participate safely in the political process, but also increases New Yorkers' access to their government by allowing for more options to view public meetings. This law will continue to bolster the open and transparent style of government that we're committed to maintaining in the Empire State."

Meetings can be held either over a video service such as Zoom or by phone. There is no change to the requirement that Public Bodies must provide notice to constituents that a meeting is taking place, and they are required to inform constituents how to access the public meeting virtually.

On March 12, 2020, Executive Order 202.1 suspended the portion of New York State law requiring meetings to take place in person, and authorized public meetings to be held virtually. On June 25, 2021, the State Disaster Emergency ended, removing the provision suspending the law.

Attorney General James and DOI Commissioner Garnett Announce Indictment of Four Asbestos Investigators for Filing Fraudulent Inspection Reports

 

Defendants Filed Reports Claiming to Be Inspecting Residential and Commercial Sites While They Were Out of the State and Country, Jeopardizing New Yorkers’ Health and Safety

 New York Attorney General Letitia James and New York City Department of Investigation (DOI) Commissioner Margaret Garnett today announced the indictment of four Certified Asbestos Investigators (CAI) for repeatedly filing false asbestos inspection reports, putting the health and safety of workers and New York City residents at risk. A joint investigation conducted by the Office of the Attorney General (OAG) and the DOI found that over several years, the defendants — who were independent contractors certified by the New York state Department of Labor (DOL) and the New York City Department of Environmental Protection (DEP) — submitted fraudulent reports for inspections that took place on days when they were out of the state and country. 

The defendants — Valentino Buono (50), Jeff Ezulike (48), Russell Goss (42), and Kostas Kamberis (54) — were arraigned before Supreme Court Judge Toni Cimino in Queens County on a total of 19 counts, including Offering a False Instrument for Filing in the First Degree, a Class E Felony, which carries a maximum jail sentence of up to four years.

“By filing these blatantly false health and safety reports, the defendants violated the public trust, as well as the law,” said Attorney General James. “These individuals failed to do their jobs to properly inspect sites for asbestos, putting the health of New Yorkers at risk, while exploiting the state and the system. No matter how big or small, we will continue to root out corruption at every level. I thank the DOI for its commitment to this cause.”

“Filing fraudulent asbestos reports with New York City is a crime and, as these charges show, can also threaten New Yorkers' health and safety,” said DOI Commissioner Garnett. “The reason the city requires certified asbestos inspectors to file reports with the city is to confirm that dangerous asbestos is identified and abated correctly. The DEP reported allegations of potential fraudulent filings to DOI and we worked hand-in-hand with the state attorney general to uncover this charged illegal conduct. This kind of collaboration within the city and with our law enforcement partners is crucial in holding accountable those who seek to defraud New York City.”

Asbestos is a naturally occurring mineral that is hazardous to human health and is known to cause a type of cancer known as mesothelioma. The DOL authorizes CAIs to conduct field inspections of residential and commercial sites to determine if dangerous asbestos is present, where it is located, and how much there is. Upon conducting their inspections, CAIs are required to file an Asbestos Assessment Report with the DEP. The report requires the inspector to certify that the inspection took place at the location, date, and time listed on the report, and whether asbestos was present. Asbestos survey records must accurately reflect the site conditions at the time of investigation.

In February 2020, the OAG and the DOI began the investigation following the DEP identifying and reporting potentially fraudulent filings to the DOI. The investigation uncovered the fraudulent reports by comparing inspection dates to domestic and international travel dates recorded by U.S. Customs and Border Protection. The OAG and the DOI then reviewed airline records, such as ticket purchases and boarding documentation, as well as bank records, to confirm the discrepancies. On days that the defendants claimed to have inspected sites throughout the city for asbestos, Buono was actually in Mexico, Ezulike was in Nigeria and Texas, Kamberis was in Italy and Greece, and Goss was in Bermuda, Denmark, Puerto Rico, and Italy.

The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law. 

Attorney General James and DOI Commissioner Garnett would like to thank the New York City Department of Environmental Protection and the New York state Department of Labor for their assistance during this investigation.