A Texas-based dermatology practice operator will pay $8.9 million to resolve allegations of potential violations of physician self-referral and anti-kickback laws.
According to a Sept. 14 news release from the Justice Department, Oliver Street Dermatology Management, which operates dermatology practices, surgical centers and labs nationwide, self-reported the alleged fraud.
Oliver Street Dermatology acquired numerous dermatology practices from 2013 to 2018. The company reported it discovered credible evidence senior managers offered to increase the purchase price of 11 clinics it acquired in exchange for agreements from providers at the clinics to refer patients to other affiliated entities.
Claims for some of these referred services were then billed to Medicare, according to the news release.
The claims resolved by the settlement are allegations only, and no determination of liability was made as part of the settlement.