Gamma Healthcare’s Owners Resolve Allegations of False Claims Act

Gamma Healthcare Settles Allegations, Owners Facing Long-Term Exclusion from Federal Healthcare Programs

Gamma Healthcare and its owners have agreed to settle allegations of violating the False Claims Act by paying $13.6 million, as announced by the Justice Department. The allegations claimed that they submitted claims to Medicare for polymerase chain reaction urinalysis laboratory tests that were not ordered by healthcare providers and deemed medically unnecessary.

In addition to the monetary settlement, Gamma Healthcare owners Jerry W. Murphy and Jerrod W. Murphy have agreed to a 15-year exclusion from participating in federal health care programs. This means they will be prohibited from receiving payments or benefits from these programs for the specified duration. The Justice Department emphasized the importance of ensuring compliance with healthcare regulations to protect the integrity of government healthcare programs.

According to Bloomberg Law Automation, this information serves as a reminder of the consequences that can result from healthcare fraud and the importance of adhering to regulations to maintain the trust and efficiency of healthcare systems. It highlights the legal actions taken against Gamma Healthcare and its owners, demonstrating that non-compliance with regulations can lead to severe penalties and consequences for both individuals and organizations involved in healthcare practices.


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