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Press Release

Springfield Psychiatrist Ordered to Pay $908,000 in Civil Settlement

For Immediate Release
U.S. Attorney's Office, Central District of Illinois

SPRINGFIELD, Ill. –  U.S. District Judge Sue E. Myerscough has entered judgment in favor of the government and against a Springfield psychiatrist, Duttala Obul Reddy, for $908,000, to settle allegations of false billing, as announced by U.S. Attorney Jim Lewis.

According to a complaint filed in September 2015, by the government, from January 2008 through February 2013, Reddy allegedly submitted bills for evaluation and management services provided at long-term care facilities that either had not been provided or had not been provided to the extent claimed. These services were provided to residents of central Illinois nursing homes, including Liberty Village, Pittsfield; Prairie Village, Rantoul; Mason City Nursing Home; Heritage Manor, Gillespie; Beverly Farm, Godfrey; and, North Church Rehabilitation, Jacksonville.

Under the terms of the settlement agreement, Reddy denies the allegations that he submitted or caused submission of false claims for payment under Medicare and Medicaid for medical services.

In addition to payment of $908,000, Reddy has agreed to his exclusion from participation in Medicare, Medicaid and all other federal health care programs for a period of 10 years. Following the 10-year period, Reddy may submit a written request for reinstatement to the Office of Inspector General for the U.S. Department of Health and Human Services. Reddy further agrees that the termination of his eligibility to participate in the Illinois Medical Assistance Program, which became effective Dec. 30, 2014, shall be permanent.

Assistant U.S. Attorneys Gregory M. Gilmore and Lillian N. Stewart of the Central District of Illinois represented the government. The U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police, Medicaid Fraud Control Unit, conducted the investigation.


Updated November 8, 2016

Health Care Fraud