Home Oklahoma City Press Releases 2009 Orthopedic Surgery and Care Providers Pay $3.5 Million to Settle Health Care Fraud Case
Info
This is archived material from the Federal Bureau of Investigation (FBI) website. It may contain outdated information and links may no longer function.

Orthopedic Surgery and Care Providers Pay $3.5 Million to Settle Health Care Fraud Case

U.S. Attorney’s Office June 08, 2009
  • Western District of Oklahoma (405) 553-8700

OKLAHOMA CITY, OK—John C. Richter, United States Attorney for the Western District of Oklahoma, announced today that orthopedic surgery and care providers have paid $3.5 million to the United States to settle health care fraud claims brought under the federal False Claims Act in a suit styled United States v. Dr. Houshang Seradge et al., Case No. CIV-00-317, filed in Oklahoma City federal court. The United States reached this settlement with the following individuals and entities:

  • Houshang Seradge, M.D., an Oklahoma City orthopedic surgeon
  • Houshang Seradge, M.D., P.C.
  • Orthopaedic & Reconstructive Center, P.C. d/b/a Orthopedic Institute, f/k/a Houshang Seradge, M.D., Inc.
  • Tower Day Surgery, Inc. d/b/a Tower Day Surgery
  • Rehab America, Inc. d/b/a The Therapy Center
  • Hospital for Special Surgery, L.L.C. d/b/a Orthopedic Hospital
  • Winfred Parker, physician’s assistant
  • Carrie Baer, occupational therapist
  • C.L. Soo, M.D., officer in one or more of the business entities
  • P. Denny Oreb, officer in one or more of the business entities
  • Pamela Landers, handled billing for one or more of the entities

“Health care providers can and will be held accountable for their billing practices,” said U.S. Attorney John Richter. “We are firmly focused on vigorously pursuing allegations of fraud and abuse which divert the scarce resources of Medicare and other government health care programs away from necessary patient care.”

In its Complaint, the United States alleged that the defendants knowingly submitted false claims for payment to various federal health care programs, including Medicare, Tricare (military health benefits), and the Federal Employees Health Benefits programs. Specifically, the United States alleged that the defendants submitted charges for medical procedures not performed, charges for medical procedures not performed by a doctor, and charges for services not performed with required physician oversight. It was alleged that in many instances, claims were processed and submitted for services rendered by Dr. Seradge when he was not even present in the state. The complaint alleged that these procedures were instead performed by a physician assistant or others in Dr. Seradge’s stead and resultant claims were submitted in the name of Dr. Seradge in violation of relevant government rules and regulations.

In addition to the payment of $3.5 million, individual defendants Dr. Seradge, Ms. Baer, Mr. Oreb, and Ms. Landers have agreed to withdraw from billing or being involved in the billing of federal health care programs for a period of three years. Upon receipt of the settlement payment, the United States agreed to dismiss the federal court action. The agreement further provides that any administrative fine, penalty, and/or sanction against any defendant is reserved for determination by the respective administrative agencies. The defendants have denied liability.

This case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Judy Copeland, Scott Maule and Tom Majors.

This content has been reproduced from its original source.