Owners of Gamma Healthcare Settle False Claims Act Allegations

Gamma Healthcare and its owners, Jerry W. Murphy and Jerrod W. Murphy, have reached a settlement agreement with the Justice Department to pay $13.6 million to resolve allegations of False Claims Act violations. The company was accused of submitting claims to Medicare for laboratory tests that were not ordered by health care providers and were deemed medically unnecessary.

As part of the settlement, Gamma Healthcare and the Murphys have agreed to a 15-year exclusion from participating in federal health care programs. This agreement serves as a resolution to the allegations brought forth by the DOJ regarding the submission of improper claims for polymerase chain reaction urinalysis tests.

The Justice Department highlighted the importance of upholding the integrity of federal health care programs and holding accountable those who engage in fraudulent practices. This case underscores the consequences that can result from violating the False Claims Act and the commitment to enforcing laws that protect the integrity of government health care programs.

This information was reported by Bloomberg Law Automation and serves as an example of the repercussions faced by companies and individuals who are found to have committed health care fraud. The settlement reached in this case demonstrates a commitment to holding accountable those who defraud government health care programs and showcases the efforts to maintain the integrity of the system.

By Sophia Gonzalez

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