Medical Services Company Accused of Billing Medicare for Unperformed Services

An Orange County, CA based heart-monitoring services company has agreed to pay the U.S. government $3.6 million to settle allegations that the company overbilled Medicare from 1998-2004.  The complaint was first filed in 2004 against National Cardio Labs LLC, its manager Adrienne Stanman, and her husband Robert Parsons.

Specifically, the government accused National Cardio Labs of violating the False Claims Act by billing for services not actually rendered to patients, services it had already been paid for, and services which it could not perform. Additionally, the complaint alleged that the defendant “unbundled” certain Medicare reimbursement codes which caused the government to over-reimburse the defendant for services performed.

The case was filed by two whistleblowers working for the defendant: James Cast, a biller, and Stanton Crowley, a technician.  The government agreed to pay the whistleblowers approximately $1.1 million for their assistance in recovering the money.

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