Lab Owner Charged In $53 Million Health Care Fraud: A Florida lab owner, Daniel Hurt, 48, of Fort Lauderdale, Florida, has been charged with over $50 million in health care fraud related to fraudulent genetic cancer screening tests. Hurt is charged by information with one count of conspiracy to commit health care fraud. Hurt had his initial appearance and arraignment by videoconference on August 30, 2022 before U.S. District Judge Kevin McNulty in Newark (New Jersey) federal court.
According to documents filed in the case and statements made in court, Hurt owned several clinical laboratories that conducted or arranged for a variety of medical tests. Hurt paid kickbacks and bribes to various entities who supplied referrals and orders for genetic cancer screening tests (CGX) for Medicare and other health care benefit program beneficiaries, without regard to medical necessity. The laboratories submitted claims for payment to Medicare for these CGX tests. Medicare reimbursed the laboratories without knowing that the services were not medically necessary or were procured through the payment of kickbacks.
From January 2019 to October 2021, Hurt, through the laboratories, submitted or caused to be submitted approximately 350,000 claims to Medicare, including approximately 8,700 claims for beneficiaries residing in New Jersey.
The government alleges that Hurt paid kickbacks to entities who supplied referrals for each CGX test that was billed to Medicare and other health care benefit programs. To conceal the payments of bribes, Hurt and the suppliers entered into sham contracts to make it appear that the suppliers were engaged in, and being paid for, legitimate marketing and referral services. The scheme resulted in Medicare paying the laboratories at least $53.3 million for CGX test claims. Hurt received at least $26.9 million from the Medicare reimbursements.
The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison, and a maximum fine of $250,000.
Hurt has also been charged in the Western District of Pennsylvania and the Southern District of Florida in relation to other health care offenses. Those charges are also pending.
The charge and allegations contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
If you have information regarding false claims involving medical tests that have been submitted to Medicare, Medicaid, TRICARE, other federal health care programs, or to other federal agencies/programs, and the information is not publicly known and no actions have been taken by the government with regard to recovering the false claims, you should promptly consult with a False Claims Act attorney (also known as qui tam attorneys) in your U.S. state who may investigate the basis of your False Claims Act allegations and who may also assist you in bringing a qui tam lawsuit on behalf of the United States, if appropriate, for which you may be entitled to receive a portion of the recovery received by the U.S. government.
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