Palatnik pleaded guilty to one count of conspiracy to offer kickbacks and one count of paying a kickback. He is scheduled to be sentenced on Nov. 9 and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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“Today’s settlement exemplifies our commitment to fighting fraud in the Medicare program,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Health care providers who flout the law need to know that my office will hold accountable those who pad their bottom line at taxpayer expense.”
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According to information presented to the court, no patient services were provided at Istomin’s East Greenwich business, Rhode Island Diagnostic Center, or his New York office. Neither office is equipped to provide patient care. It is alleged Istomin rented and used the East Greenwich office space in name only for billing purposes and to receive insurance payments made payable to his Rhode Island business.
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“Our agency will continue to aggressively investigate health care providers who bill Medicare for medically unnecessary services. These unlawful actions divert funds for needed care,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to root out such schemes.”
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In addition, when billing for CPT Code 99236, the physician shall identify that he or she was physically present and that he or she performed the initial hospital care service. The physician shall personally document the admission and discharge notes and include the number of hours the beneficiary remained in inpatient hospital status.
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It is alleged these telemedicine companies would then transfer the prescriptions to medical marketing companies, including one owned by MOX, who would then use them as part of an unlawful package of Medicare beneficiary leads sold to durable medical equipment
Read moreAn owner of a now-defunct Miami pharmacy was sentenced today to 46 months in prison for his participation in a
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