Dr. Eric Troyer and his practice, Troyer Medical Inc. (TMI), based in Landis, North Carolina, have agreed to pay $429,254 to the federal government to settle allegations of False Claims Act violations related to kickback schemes involving laboratories, officials stated.
Additionally, officials stated that Troyer and TMI will pay $195,746 to the State of North Carolina, which shared costs for claims paid by the state’s Medicaid program. They have also agreed to cooperate with the Justice Department’s investigation into others involved in the alleged schemes.
“Kickbacks to healthcare providers can undermine the integrity of taxpayer-funded healthcare programs and medical decision-making,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who pay or receive illegal financial inducements, including unlawful inducements for laboratory testing.”
The settlement resolves allegations that from August 2015 to November 2021, Dr. Troyer and his practice received kickbacks from a laboratory in Anderson, South Carolina, in exchange for referring patients to the lab.
The kickbacks were allegedly disguised as payments for phlebotomy services, office space rental, and leasing a chemistry analyzer machine, leading to false or fraudulent lab testing claims submitted to Medicare, Medicaid, and TRICARE, violating the False Claims Act.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
“This resolution demonstrates the FBI’s dedication to addressing violations that undermine the public’s trust in our healthcare systems,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “The FBI, along with our law enforcement and regulatory partners, remains committed to ensuring healthcare professionals provide transparent and ethical standards of service.”
“Kickback arrangements aimed at improperly influencing medical decisions will remain a top investigative priority for our agency,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).