DOJ announces settlement with Kentucky doctor for nearly $350,000

by Ben Vernia | September 28th, 2011

On September 27, the Department of Justice announced that a doctor and his practice in Kentucky have settled allegations raised in a qui tam suit by a former employer. From DOJ’s press release:

Louisville, Ky., physician Dr. Steven H. Stern and his practice, Kentuckiana Center for Better Bone and Joint Health PLLC (KCB) have agreed to pay $349,860 to settle allegations of overbilling Medicare, the Justice Department announced today.

The complaint, initially brought by a former employee of KCB, alleges that Stern and KCB falsely billed Medicare for infusing Infliximab, a drug used to treat rheumatoid arthritis. Specifically, the complaint alleges that Stern and KCB were splitting vials of Infliximab across multiple patients, then billing Medicare as if a whole vial was used for each patient. The complaint alleges that this practice resulted in the submission of fraudulent claims. The alleged overbilling covered a three-year period from December 2003 through December 2006.

The government announced that the relator would receive $70,000 plus attorney’s fees and costs (approximately a 20% relator’s share).

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