On December 3, the U.S. Attorney’s Office for the District of Colorado announced that the Colorado neuromonitoring company Assure Holdings Corp. and its subsidiary Assure Neuromonitoring LLC, Assure’s founder Preston Parsons, Denver-based neurosurgeon Dr. Brent Kimball, and California businessman James Mathew McAlpin agreed to pay a total of $2 million to settle allegations stemming from a qui tam whistleblower lawsuit that they violated the False Claims Act by arranging unlawful kickbacks for neuromonitoring services.
According to the government, “Assure paid illegal remuneration to surgeons through joint venture companies to induce those surgeons to order intraoperative neuromonitoring services from Assure” and “these kickbacks resulted in claims paid for by federally funded healthcare programs.”
“In Dr. Kimball’s case, the alleged kickbacks were routed to Dr. Kimball through a complex web of transfers,” the DOJ alleges. “At Dr. Kimball’s request, Mr. McAlpin, a friend of Dr. Kimball, formed a company that entered into a joint venture with Assure’s founder, Mr. Parsons. That joint venture was known as Englewood Professional Reading LLC. Through a series of transactions, a portion of the payments received by Englewood Professional Reading for oversight physician claims were routed to Dr. Kimball.”
The settlements stem from a qui tam whistleblower filed against the defendants. Under the False Claims Act’s qui tam provisions, individuals may file lawsuits alleging government contracting fraud on behalf of the United States. In successful qui tam cases, whistleblowers are eligible to receive between 15 and 30% of the settlement or judgement. According to the government, the whistleblower is set to receive 18% of the proceeds.
“Doctors’ decisions about which services to use when providing care to patients should never be tainted by how much money the doctor can make from kickbacks,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will continue to use the False Claims Act and other enforcement tools to maintain integrity in healthcare.”
“Ensuring that health care professionals and entities are held accountable for kickback violations is essential for preserving public trust and safeguarding the integrity of federal health care programs,” said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our federal and state law enforcement partners to identify and investigate alleged kickback schemes.”
In July 2023, a bipartisan group of senators introduced the False Claims Amendments Act of 2023, which address a few technical loopholes undermining the success of the FCA. The bill is widely supported by whistleblower advocates.
National Whistleblower Center (NWC) has issued an Action Alert calling on Congress to pass the bill.
Join NWC in Taking Action:
Demand that Congress strengthen the False Claims Act
Further Reading:
$2 Million Resolves Kickback Allegations Relating to Denver Neuromonitoring Company
Bipartisan Legislation Unveiled to Strengthen False Claims Act
