National Dermatology Management Company Self-Reports FCA Violations, Settles for $8.9 Million
Department of Justice – A Texas company that operates dermatology services across the country has agreed to pay $8.9 million to resolve self-reported Stark Law and Anti-Kickback Law violations.
From 2013 to 2018, Oliver Street Dermatology Management LLC—dba U.S. Dermatology Partners—acquired numerous dermatology practices across the United States. It subsequently reported to the DOJ that former senior managers had offered (or agreed) to increase the purchase price of 11 acquired dermatology practices in exchange for an agreement by the provider at the practice to refer services to USDP-affiliated entities following the acquisition. Such an arrangement involving self-referrals and kickbacks would taint reimbursement claims to Medicare under the False Claims Act. The DOJ was previously unaware of these improprieties, and the company was credited for its collaboration in detailing the problematic transactions to the agency.
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