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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Oklahoma

FOR IMMEDIATE RELEASE
Monday, June 13, 2016

Oklahoma Medical Clinics Pays $2.5 Million to Settle Allegations of False Claims for Medical Services Provided to Federal Employees

Oklahoma City, Oklahoma – FEDCARE, LLC, and THE BROADWAY CLINIC OF TULSA, LLC, has paid $2,500,000 to the United States to settle civil penalty claims stemming from allegations that the clinics violated the False Claims Act by submitting false claims to the Office of Workers Compensation Programs of the United States Department of Labor ("DOL-OWCP"), announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.

FedCare, LLC ("FedCare") is an Oklahoma limited liability company that operates a medical clinic in Oklahoma City. A related entity, The Broadway Clinic of Tulsa, LLC ("Broadway"), is an Oklahoma limited liability company that operated a medical clinic in Tulsa. FedCare and Broadway provided medical services to federal employees under the Federal Employees’ Compensation Act (FECA). FECA provides workers compensation benefits to civilian employees of the United States for disability due to personal injury sustained while in the performance of duty, and for employment-related disease. Benefits include rehabilitation, medical, surgical and necessary expenses. Claims for services provided under FECA are submitted to DOL-OWCP.

The United States contends that from July 1, 2006, through December 31, 2012, FedCare and Broadway submitted false claims for payment to DOL-OWCP. Specifically, it is alleged that FedCare and Broadway submitted claims to DOL-OWCP for medical services furnished to federal employees of fourteen federal agencies that were false because they were either (1) billed at a higher rate than allowed or (2) not performed at all.

In order to resolve these allegations, FedCare and Broadway agreed to pay $2,500,000 to the United States.  In reaching this settlement, FedCare and Broadway did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.

This case was investigated by the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ronald R. Gallegos.

Topic(s): 
Health Care Fraud
Updated June 13, 2016