• AML
  • Qui Tam
  • SEC
  • CFTC
  • FCPA
  • FAQS
Demand Protections for Artificial Intelligence Whistleblowers | Take Action!
Subscribe
Donate
Get Help
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
Whistleblower Network News
No Result
View All Result
Home False Claims-Qui Tam

South Carolina Healthcare Organizations To Pay $140 Million To Resolve Uncontested FCA Whistleblower Allegations

Peter BriccettibyPeter Briccetti
September 8, 2021
in False Claims-Qui Tam
Reading Time: 3 mins read
FCA
Share on TwitterShare on FacebookShare on LinkedInEmail

A group of South Carolina healthcare providers, laboratories, and testing facilities all owned or managed by chiropractor Daniel McCollum will pay a total of $140 million to the U.S. government after failing to defend against charges of kickback schemes and unnecessary testing brought forth by a whistleblower complaint. According to a September 3 U.S. Department of Justice (DOJ) press release, the companies, Oaktree Medical Centre P.C. (Oaktree), FirstChoice Healthcare P.C. (FirstChoice), Labsource LLC (Labsource), Pain Management Associates of the Carolinas LLC (PMA of the Carolinas) and Pain Management Associates of North Carolina P.C. (PMA of North Carolina), allegedly provided illegal financial incentives to providers who were considering using their services. The government also alleges that ProLab LLC (ProLab) and ProCare Counseling Center LLC (ProCare) billed federal medical programs for unnecessary urine drug tests.

The Stark Law and the Anti-Kickback Statute prohibit “offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services.” These laws are designed to make sure that any kind of testing or medical service provided to patients is medically necessary and not predicated on a preexisting financial or gift-giving relationship.

In a related default judgement dated July 20, 2021, courts ordered ProLab and ProCare to pay $4,269,084.78, which is a portion of the total $140 million for the unnecessary testing aspect of the judgement.

Register for National Whistleblower Day Register for National Whistleblower Day Register for National Whistleblower Day

Kickback schemes in the medical profession are not victimless crimes. When organizations are allowed to successfully get away with schemes that wrongfully incentivize false billing, the entire medical system suffers as a result. Trust between doctors and patients is often irreparably damaged, and organizations are encouraged to expand fraudulent operations based on the success of the past schemes.

“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “For years, these companies used improper financial incentives to generate health care provider referrals. This $140 million judgment is a cautionary tale of why health care fraud does not pay.”

The five whistleblowers involved in the final settlement filed three separate qui tam cases against the organizations owned or managed by McCollum. Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson and Tracy Hawkins will collectively receive a portion of 15 to 30% of the total $140 million amount, which will be split between the whistleblowers. The amount of the reward has not yet been determined by the government. Bringing cases under the False Claims Act as a whistleblower has advantages for private citizens, and has been proven to effectively incentivize people to report fraud when they experience it. In just the last two weeks, WNN has reported on 3 separate medically related False Claims Act settlements, and more are being announced every week.

Read the DOJ’s press release here.

Read more False Claims Act/qui tam news on WNN.

Tags: False Claims / Qui TamFalse Claims/Qui Tam
Previous Post

Brittany Marie Iriart

Next Post

It Takes A Village to Raise a Whistleblower

Peter Briccetti

Peter Briccetti

Peter Briccetti is a contributing editor with Whistleblower Network News. He writes about breaking whistleblower news, and False Claims Act whistleblowers, FCPA whistleblowers, and tax fraud whistleblowers. Peter is a graduate of Hamilton College with a degree in History and an interest in politics and anti-corruption law. At Hamilton, he wrote for the Hamilton College Spectator as an editor and contributor.

Next Post
It Takes A Village to Raise a Whistleblower

It Takes A Village to Raise a Whistleblower

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

  • This field is for validation purposes and should be left unchanged.

Most Popular

CFTC Awards $700,000 to Whistleblower for “Courage” and “Critical Role in Enforcement Efforts”

Whistleblowers to Receive Up to $920K after Alleging Fraud in Breast Cancer Testing

Supreme Court Upholds, For Now, Trump Firing of MSPB Chair

Whistleblower Suit Leads to $3.3 Million Stark Law Settlement

Paper Outlines Founding Father’s Warnings As Trump Goes After Key Whistleblower Appointees

Whistleblower Receives $5 Million for Exposing California Health System’s Alleged Kickback Scheme

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED.
Subscribe to receive breaking whistleblower updates.

  • This field is for validation purposes and should be left unchanged.

About Us

  • About
  • Contact Us
  • Donate
  • Careers

Subscribe

  • Daily Mail
  • Follow us on Twitter
  • YouTube Channel

Contribute

  • Letter to the Editor
  • Submission Guidelines
  • Reprint Guidelines

Your Experience

  • Accessibility Statement
  • Privacy Policy
  • Terms of Use

Help

  • Rules for Whistleblowers
  • Frequently Asked Questions
  • Advertise
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments.

Submit an Article

Copyright © 2025, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

Please enter your username or email address to reset your password.

Subscribe to WNN
Join the Waitlist for National Whistleblower Day 2025! July 30, 2025 on Capitol Hill
JOIN WAITLIST

Add New Playlist

Demand Protections for Artificial Intelligence Whistleblowers

Take Action!
No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
  • Rewards
  • Whistleblower of the Week
  • Environment & Climate
  • Opinion
  • Editorial
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Make National Whistleblower Day Permanent
  • Media
    • Podcasts
    • Videos
    • Webinars
    • National Whistleblower Day
  • Whistleblower Poll
  • Whistleblower Resources
    • Frequently Asked Questions
    • Resources for Locating An Attorney
    • The New Whistleblowers Handbook

Copyright © 2024, Whistleblower Network News. All Rights Reserved.

Go to mobile version