Department of Justice Seal

FOR IMMEDIATE RELEASE

CIV

MONDAY, JULY 12, 1999

(202)514-2007

WWW.USDOJ.GOV

TDD (202) 514-1888


EMERGENCY PHYSICIAN BILLING COMPANY TO PAY $15 MILLION TO SETTLE
HEALTH CARE BILLING FRAUD CLAIMS


WASHINGTON, D.C. -- A Florida-based emergency physician billing company, Gottlieb's Financial Services, Inc. (GFS), and its current owner, Medaphis Physician Services Corporation, based in Atlanta, Georgia, will pay the United States and thirty-five states $15 million to settle allegations that GFS submitted false claims to various federal health care programs, the Department of Justice announced today.

Acting Assistant Attorney General David W. Ogden of the Civil Division said the settlement resolves allegations of false billings by GFS to the Medicare, Medicaid, and TRICARE programs, as well as the Federal Employees Health Benefits Program.

The Department alleged that GFS submitted false claims to the health care programs on behalf of emergency physicians around the country. According to the Department, GFS typically upcoded claims and billed for services to make it appear more extensive services were rendered than those actually provided by the physicians.

The agreement settles a dispute with GFS and Medaphis originally brought as a qui tam case in U.S. District Court in Grand Rapids, Michigan. As part of the settlement, relator Greg Robinson, who filed the suit on behalf of the United States, will receive approximately $2,422,500.

The case was conducted by the Civil Division and the U.S. Attorney's Office for the Western District of Michigan, with the assistance of the Defense Criminal Investigative Service; the Program Integrity Branch of the TRICARE Program; the United States Department of Defense; the Grand Rapids, Michigan office of the FBI; HHS' Office of Inspector General; and various State Attorney General Medicaid Fraud Control Units around the country.

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