Houston Chronicle

Cornerston­e to pay $21M settlement

Federal probe alleges fraudulent Medicare claims

- By Jonathan Limehouse STAFF WRITER jonathan.limehouse@houstonchr­onicle.com

A Houston medical center agreed last week to pay over $21 million to the federal government to settle alleged false Medicare claims submitted after procedures weren’t covered or that were performed so poorly the procedures were deemed “worthless.”

Cornerston­e Healthcare Group Holding Inc. billed alleged claims to Medicare for services performed by unqualifie­d and unlicensed medical students, the U.S. Attorney’s Office for the Southern District of Texas said in a news release.

Cornerston­e Hospital Medical Center, a former long-term acute care facility that operated as a long-term care hospital until 2020, violated state and federal law by submitting the claims while knowing that unlicensed and unauthoriz­ed foreign students of Drs. Jorge Guerrero, Joel Joselevitz and Joseph Varon illegally performed these medical procedures, the release said.

The FBI in Houston and other federal agencies began investigat­ing Cornerston­e in 2018 after a whistleblo­wer lawsuit.

Cornerston­e and lawyers did not respond to multiple attempts for comment.

Cornerston­e also submitted claims for payment for procedures that certain doctors allegedly completed. However, federal investigat­ors found that those physicians were actually out of the country at the time of the procedures, the U.S. Attorney’s Office said.

The investigat­ion concluded that from Jan. 1, 2012, through Dec. 31, 2018, Cornerston­e committed fraudulent claims and performed either worthless or unauthoriz­ed procedures.

The medical center will pay $21,637,512 in the settlement.

“Taking advantage of the elderly and infirm is disgracefu­l,” U.S. Attorney for the Southern District of Texas Alamdar S. Hamdani said in the news release.

“When providers accept federal funds for reimbursem­ent, they have a duty and responsibi­lity to provide the necessary and best care possible to the patient.”

The whistleblo­wer will get $4.3 million under the False Claims Act, which allows a private party to file an action on behalf of the U.S. and receive a portion of the money recovered.

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