A former Van Nuys physician, Mohammad Rasekhi, along with his health clinics, co-owned laboratory, and company executive, have agreed to pay $15 million to settle allegations of submitting false claims to Medicare and Medi-Cal. This settlement comes after the U.S. Attorney’s Office for the Central District of California announced the resolution of the case today.
Rasekhi, who is the founder and chief medical officer of Southern California Medical Center (SCMC) and co-owner of Universal Diagnostic Laboratories (UDL), was implicated in a series of fraudulent activities involving his clinics and the laboratory. Sheila Busheri, the CEO of both SCMC and UDL, was also named in the settlement, along with the two entities.
The allegations against Rasekhi and his associates include knowingly submitting false claims to Medicare and Medi-Cal by engaging in illegal practices such as:
Paying kickbacks to marketers in exchange for referring Medicare and Medi-Cal beneficiaries to SCMC clinics, violating the Anti-Kickback Statute.
Providing illegal incentives, such as above-market rent, discounted services, and write-offs of patient and staff balances, to third-party clinics that referred patients to UDL for laboratory tests.
Self-referrals, by directing patients from SCMC clinics to UDL for lab services, which violated the Stark Act, a law that prohibits such referrals.
The U.S. Attorney’s Office emphasized that these actions resulted in fraudulent claims being submitted to Medicare and Medi-Cal, which are federally funded healthcare programs. In total, Rasekhi and his entities will pay $15 million to settle these allegations.
U.S. Attorney Martin Estrada commented, “Providers who exploit the Medicare, Medicaid, and TRICARE programs for their personal financial gain will be held accountable under the False Claims Act. This significant resolution evidences our steadfast commitment to ensuring the integrity of federally funded healthcare programs.”
While the settlement resolves the allegations, there has been no determination of liability as of yet. This case highlights the importance of enforcing healthcare laws, ensuring that the public trust in federally funded healthcare services remains intact.