Texas clinics face potential $300M fine for submitting 20K false claims

Health Exec, By Chad Van Alstin, November 23, 2024

A chain of clinics in Texas is facing a potential $300 million fine after a jury ruled it knowingly submitted more than 20,000 fraudulent reimbursement claims to Medicare.

The lawsuit against Healthcare Associates of Texas (HCAT), which operates eight provider clinics in Northern Texas, was brought by a former employee turned whistleblower, Cheryl Taylor, who noticed the inflated claims and misrepresented care delivery during her time in the billing office.

According to coverage from the Dallas Morning News, the clinics were accused of billing for frivolous labs, imaging scans, and other tests, as well as manipulating medical charts to justify the procedures. In some cases, physicians were reimbursed for care provided by non-physician staff.

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