Houston-based Northwest Anesthesiology and Pain Services agreed to pay $999,999 to settle allegations it violated the False Claims Act and Stark law.
From Jan. 1, 2019, through Dec. 31, 2021, Northwest Anesthesiology and Pain Services was paid approximately $1.8 million in bonus payments due to a contractor's misconduct, where Medicare reimbursed for services rendered by its independently contracted pain management practices, according to a Jan. 23 news release from the Justice Department.
In 2019, NWAP’s former president hired Stacey Green and Remedy Physician Solutions as an independent contractor to manage its pain management practices, granting Ms. Green authority over compensation and bonus payments.
According to the release, NWAP claims an internal investigation revealed Ms.Green instructed the billing company to calculate bonuses improperly — based on lab referrals minus costs, fees and expenses rather than calculating bonuses based on the practices' productivity — allegedly to increase collections tied to her management fee.
The government alleges these actions created improper financial relationships by using lab revenue to pay bonuses, effectively serving as kickbacks for referrals.