Northwest Anesthesiology and Pain Services (NWAP) has agreed to pay $999,999 to settle potential violations related to Medicare reimbursement claims. The settlement was announced by acting U.S. Attorney Jennifer B. Lowery. NWAP, based in Houston, faced allegations of violating the False Claims Act and the Stark Law.
In 2019, Donald Carmichael, then-president of NWAP, hired Stacey Green and her company Remedy Physician Solutions as independent contractors to manage NWAP's pain management practices. Green was given authority over compensation and bonus payments for these practices.
An internal investigation by NWAP revealed that Green instructed the billing company to calculate bonuses based on lab referrals rather than productivity, potentially inflating collections which influenced her management fee. Between January 1, 2019, and December 31, 2021, NWAP reported paying approximately $1.8 million in bonuses due to this misconduct.
The government alleges that these actions resulted in improper financial relationships between NWAP and its contracted pain management practices, suggesting that bonuses were paid from lab revenue as kickbacks for referrals.
"The Stark Law safeguards the integrity of the Medicare program by ensuring patients receive care based on their physician’s independent medical judgment and not any personal financial interests," said Lowery. "Our office remains committed to protecting the program and reinforcing the public trust in our federal healthcare system."
Special Agent in Charge Jason E. Meadows of DHHS-OIG emphasized that prohibited referrals jeopardize patient safety and lead to unnecessary services. He stated that submitting false claims undermines federal health care programs' integrity.
This settlement followed NWAP's self-disclosure to the U.S. Attorney’s Office and DHHS-OIG, which earned them credit for cooperation during the investigation. The case was handled by Assistant U.S. Attorney Michelle Luong with former AUSA Andrew Bobb's assistance.