Court issues $140M judgement against SC clinics for healthcare fraud

Crime News
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COLUMBIA, S.C. (WCBD) – Acting United States Attorney for the District of South Carolina, M. Rhett DeHart, on Friday announced $140 million in default judgements against multiple South Carolina clinics, in “one of the largest ever False Claims Act judgements in the District of South Carolina.”

The clinics include Oaktree Medical Centre, FirstChoice Healthcare, Labsource, Pain Management Associates of the Carolinas, Pain Management Associates of North Carolina, ProLab, and ProCare Counseling Center, all owned or operated by chiropractor Daniel McCollum.

The suit alleges that the businesses “provided illegal financial incentives to doctors and mid-level providers to induce the referrals of urinary drug tests” and “billed federal healthcare programs for unnecessary urinary drug testing.”

Additionally, the suit alleges that the 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.”

The alleged actions are in violation of the Stark Law and Anti-Kickback Statute, which are designed to “prevent financial incentives from improperly influencing medical decision-making.”

DeHart explained that “patients should not have to question whether their doctor recommended a test or procedure for personal gain.” He said that this case is a prime example of “why health care fraud does not pay.”

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