NY Dermatologist Settles FCA Suit


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New York Doctor Settles False Claims Suit For $2.75M


Lawrence Jaeger, a doctor at Community Medical and Dermatology Center and Advanced Dermatology of New York, will pay $2.75 million to resolve allegations he submitted false claims to Medicare and the New York Medicaid program.

Jaeger, who provides dermatology services to patients in the Bronx and Manhattan, will pay the sum under the False Claims Act to settle a whistleblower lawsuit. The settlement isn’t an admission of liability.

“Healthcare fraud drains the system of billions of dollars of hard-earned taxpayer money,” said U.S. Attorney Preet Bharara. “Doctors are supposed to treat patients, not defraud the public.”

Jaeger will pay $2.7 million for the Medicaid claims and $76,000 on the Medicare ones, with $1.6 million going to New York state coffers.

He allegedly told the state’s health department the majority of his practice’s services would be of the primary-care variety. That allowed him to obtain certification for the practice that would earn a higher Medicaid reimbursement rate–some $150 instead of $30. But Jaeger’s office actually was “almost exclusively a dermatology center and performed only a negligible number of primary-care services,” prosecutors allege.

They also contend he submitted false claims to Medicare for services carrying higher reimbursement rates than those he actually provided.

SOURCE The Wall Street Journal

Read the full article here.



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