CityMD, which operates more than 175 urgent care centers in New York and New Jersey, has agreed to pay $12 million to settle allegations of violating the False Claims Act. The allegations state that for 2 years, CityMD knowingly submitted false claims to a federal health program for uninsured patients for COVID-19 testing. The Justice Department says CityMD failed to adequately verify patients’ insurance status, submitting claims for those who already had insurance. Additionally, CityMD is alleged to have caused outside labs to submit false claims by classifying those same patients as uninsured. CityMD cooperated with the investigation, including voluntarily hiring a third party to help assess the false claims.Â
The resolution: An announcement posted by the Justice Department indicates that the inappropriate reimbursements will be returned to the government.
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