The U.S. Attorney’s Office for the District of Colorado has announced settlements totaling over $2 million involving Denver-based Assure Holdings Corp., its subsidiary Assure Neuromonitoring LLC, and several individuals. The settlements address allegations of violating the False Claims Act through kickbacks related to neuromonitoring services.
According to the office, Assure, its founder Preston Parsons, neurosurgeon Dr. Brent Kimball, and businessman James Mathew McAlpin allegedly arranged illegal payments to induce referrals for intraoperative neuromonitoring services. These actions reportedly violated the Anti-Kickback Statute, which aims to prevent financial incentives from influencing medical providers' decisions.
Intraoperative neuromonitoring involves using electrodes during surgery to monitor a patient's nervous system. Allegations suggest that Assure paid surgeons through joint ventures to order these services. In Dr. Kimball's case, funds were allegedly funneled through Englewood Professional Reading LLC, a company formed by Mr. McAlpin at Dr. Kimball's request.
The United States claims these arrangements led to fraudulent claims submitted for payment by federally funded healthcare programs such as Medicare and Medicaid. The settlements require Assure to pay $1.008 million, Dr. Kimball $650,000, Mr. Parsons $225,000 (based on his financial condition), and Mr. McAlpin $125,000.
Acting U.S. Attorney Matt Kirsch stated: “Doctors’ decisions about which services to use when providing care to patients should never be tainted by how much money the doctor can make from kickbacks.” Special Agent in Charge Linda T. Hanley added: “Ensuring that health care professionals and entities are held accountable for kickback violations is essential for preserving public trust.”
The case also involved qui tam provisions of the False Claims Act allowing private parties to file actions on behalf of the government and receive a portion of any recovery; in this instance, 18% will go to relator Mathis.
This resolution resulted from collaboration between federal authorities and state agencies including HHS-OIG and was investigated by Assistant United States Attorney Jasand Mock.
It is important to note that these settlements resolve allegations only without any determination of liability.