Whistleblowers Settle Medicare Fraud Claims against Two NJ Medical Practices

NEW YORK, Dec. 7, 2016 /PRNewswire/ -- Following the December 7, 2016 court-ordered dismissal of a two defendants from a whistleblower lawsuit in the US District Court for the District of New Jersey, whistleblower attorney Timothy J. McInnis of NYC's McInnis Law announced the settlement of all qui tam claims against Summit Medical Group (SMG) in Berkeley Heights, NJ and Emergency Medical Associates of New Jersey (EMA) in Parsippany, NJ, in Civil Action No. 2:08-CV-020-42.

The lawsuit, brought by two healthcare professionals, alleged that from 2002 to 2009, SMG and EMA violated the False Claims Act by admitting Medicare patients to Atlantic Health System's (AHS) Overlook Medical Center in Summit, NJ, Memorial Medical Center in Morristown, NJ and the former Mountainside Hospital in Montclair, NJ, on an inpatient basis, when they should have been admitted under a less expensive "observation status" or never admitted at all. The complaint also alleged that the defendants improperly kept patients in the hospitals for excessive three-day or longer stays to permit them to receive Medicare benefits at skilled nursing facilities following their discharge from the hospitals.

In 2012, AHS settled related claims against it with the United States Attorney's Office for the District of New Jersey and Mr. McInnis' whistleblower clients for $9 million. None of the settling defendants admitted to liability in resolving the allegations against them. The lawsuit is continuing against a third medical practice, Hospitalist Associates, Inc., in Berkeley Heights and Summit, NJ, and its head Samir Patel, M.D.

Attorney McInnis did not disclose the identities of the two whistleblowers or the terms of the agreements with EMA and SMG. He reported that his clients expect to receive 15% to 25% of the AHS settlement, and 25% to 30% of the EMA and SMG settlements, plus reasonable attorneys' fees and expenses. Attorney McInnis explained that the higher percentage potentially awarded in the EMA and SMG matters is because the Government did not join in the claims against those defendants, whereas it did intervene in the claims against AHS.

For additional information, contact Timothy McInnis of McInnis Law at (212) 292-4573 or [email protected]

SOURCE McInnis Law