Healthcare

Michigan Doctor, Pharmacy, And Landlord Pay $700K To Settle Healthcare Fraud Allegations

Healthcare
Source: TFP File Photo

A Michigan doctor, his landlord, and a pharmacy have agreed to pay over $700,000 to settle allegations of healthcare fraud, including illegal kickbacks and the prescription of medically unnecessary opioids.

Dr. Stephen Swetech, who operated a medical practice in Clinton Township, Michigan, along with his wife’s company, GMAJOS, LLC (the landlord of the office complex), and pharmacist Yasser Maisari, have reached a settlement with the United States and the State of Michigan.

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The settlement resolves two sets of allegations:

  1. Illegal Kickbacks: Biolab, a medical laboratory, allegedly paid inflated rent to Dr. Swetech in exchange for patient referrals. This arrangement violated the False Claims Act, which prohibits improper inducements and self-referrals.
  2. Unnecessary Prescriptions: Dr. Swetech allegedly prescribed medically unnecessary opioids and ADHD medications, which were filled by Maisari’s pharmacy, Heartland Drugs. This also violated the False Claims Act, which prohibits billing the government for unnecessary medical services.

In addition to the financial settlement, Dr. Swetech has agreed to surrender his DEA registration and is permanently banned from prescribing controlled substances.

“The False Claims Act is an important tool to deter and hold accountable those who submit fraudulent medical claims to the government,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Healthcare providers whose services are tainted by improper financial relationships or who are charging the government for unnecessary medical services will be vigorously investigated by our office.”

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“The payment of kickbacks in exchange for patient referrals can corrupt legitimate medical decision-making and lead to the delivery of fraudulent and unnecessary medical services,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region.  “Working together with our partners, HHS-OIG will continue our efforts to identify and investigate those who seek to unlawfully benefit from such arrangements.”

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