Florida-based orthopedic surgeon, rehabilitation center pay $1.5M to settle False Claims Act violations: 4 key notes

Laura Dyrda -   Print  | Email

Orlando, Fla.-based Conway Lakes Health & Rehabilitation Center and an orthopedic surgeon agreed to pay $1.5 million to settle anti-kickback violation allegations.


Four things to know:

1. In 2016, a former employee filed a lawsuit against the rehabilitation center and orthopedic surgeon, alleging the center paid physicians as medical directors, and the physicians referred patients to the center's services. Kenneth Krumins, MD, was named in the lawsuit as the medical director.

2. The center also allegedly provided free dinners and tickets to sporting events to Central Florida-based physicians. This settlement resolved allegations that Dr. Krumins participated in a similar kickback scheme with a related home health agency, according to the DOJ statement.

3. The parties agreed to settle the lawsuit for $1.5 million, and Dr. Krumins will pay $500,000. Since the lawsuit was filed under the whistleblower provision of the False Claims Act, the former employee received $267,000 of the settlement.

4. The defendants did not admit liability with the settlement.

"Disguising intricate kickback arrangements through directorships and other misrepresented positions corrupts physician decision making and undermines the public's trust in the healthcare system," said Special Agent in Charge Shimon Richmond of HHS. "Our agency will continue to investigate healthcare providers that seek to illegally boost profits at the expense of federal healthcare programs."

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