CityMD to Pay Over $12 Million to Settle Allegations of False Claims to COVID-19 Uninsured Program

HI INDIA NEWS DESK

NEW JERSEY- City Medical of the Upper East Side, PLLC, Summit Medical Group, P.A., Summit Health Management, LLC, and Village Practice Management Company, LLC, collectively known as CityMD, will pay $12,037,109 to settle allegations of False Claims Act violations. The Justice Department claims that CityMD submitted false COVID-19 testing claims to the Health Resources and Services Administration (HRSA) for insured patients from February 4, 2020, to April 5, 2022. CityMD allegedly failed to verify patients’ insurance status and caused outside labs to submit false claims.

CityMD received credit for voluntarily disclosing the issue and cooperating with the investigation. The settlement resolves a qui tam lawsuit filed by CityMD patient Steven Kitzinger, who will receive $2,046,308. The investigation involved the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of New Jersey, and the Department of Health and Human Services Office of Inspector General.

The settlement reflects efforts to ensure pandemic relief funds were properly used. There has been no determination of liability.