The settlement resolves allegations that PMG caused the submission of false claims to Medicare and TennCare for medically unnecessary urine drug tests. The settlement also resolves allegations that PMG caused the submission of false claims to Medicare and TennCare for non-Food and Drug Administration-approved pharmaceuticals Botox, Supartz and Eufflexa, which PMG bought from foreign-based suppliers. The U.S. contends that PMG administered the non-FDA approved pharmaceuticals to Medicare and TennCare patients and then billed Medicare and TennCare for the pharmaceuticals.
The U.S. investigation was initiated after extensive data analysis identified PMG as a potential outlier in the provision of urine drug testing to Medicare patients. During the investigation, the U.S. discovered information regarding PMG’s administration of non-FDA approved drugs to Medicare and TennCare patients. Once informed of the investigation, PMG cooperated and instituted remedial measures to address the allegations. The alleged conduct happened during 2014-2015.
The U.S. Department of Health and Human Services-Office of Inspector General and the Tennessee Bureau of Investigation investigated the case. Assistant U.S. attorney Jason Ehrlinspiel served as prosecutor.
The claims settled by the agreement were allegations only, and there were no determination of liability.