Frederick MD Oncology Practice and Owner to Pay Over $1.4 Million to Resolve Fraud Allegations

A Frederick, Maryland-based oncology practice and its owner have agreed to pay $1.45 million to the United States to settle allegations of violating the False Claims Act, as announced by the U.S. Attorney’s Office for the District of Maryland. The settlement resolves claims that the practice, Progressive Oncology & Hematology, LLC, and its sole provider, Mouhamad Bazzi, MD, engaged in fraudulent billing practices related to chemotherapy drugs.

According to the government’s allegations, Progressive Oncology & Hematology and Dr. Bazzi submitted claims to Medicare, Medicaid, and the Department of Veterans Affairs (VA) for reimbursement of chemotherapy drugs that were not paid for by the practice. Specifically, it is alleged that the defendants sought reimbursement for drugs that were received through charitable organizations or grant programs, and which were provided to specific patients at no cost to the practice. This practice would have resulted in the practice being reimbursed for drugs it did not incur expenses for.

The allegations further detail that the practice and its owner directed that wastage, which refers to small amounts of extra medication from single-use vials, be split among multiple patients. The defendants then allegedly billed federal and state health insurance programs as if each patient had received their own individual single-use vial, thereby inflating the number of billable units. Additionally, the government claims that Progressive Oncology & Hematology and Dr. Bazzi billed these insurance programs for chemotherapy drugs that were prescribed by Dr. Bazzi but were never actually administered to patients at the practice. These alleged actions represent a significant breach of trust in healthcare billing and patient care.

The Department of Health and Human Services Office of Inspector General (HHS-OIG) and the Department of Veterans Affairs Office of Inspector General (VA OIG) played key roles in the investigation. The U.S. Attorney’s Office highlighted that such settlements underscore a strong commitment to holding accountable those who seek to profit at the public’s expense through fraudulent means. Healthcare providers participating in federal programs like Medicare are expected to adhere to correct billing practices for services rendered to beneficiaries. The HHS-OIG has stated that it prioritizes working with law enforcement partners to investigate and address alleged inaccurate billings submitted to federal healthcare programs. The VA OIG has also emphasized its dedication to maintaining the integrity of claims submitted to VA healthcare programs.

This settlement serves as an example of the government’s ongoing efforts to combat healthcare fraud. The False Claims Act is a critical legal tool used in these endeavors. Individuals with information about potential fraud, waste, abuse, or mismanagement in government programs are encouraged to report such concerns to the Department of Health and Human Services by calling 800-HHS-TIPS (800-447-8477). It is important to note that the claims resolved by this settlement are allegations, and no determination of liability has been made. Further information about the Maryland U.S. Attorney’s Office, its priorities, and resources for reporting fraud can be found on their website.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland.

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