McInnis Law: Whistleblower Case against CityMD Ends in Settlements with US and NY for $7.4 Million

NEW YORK, June 20, 2018 /PRNewswire/ -- McInnis Law announces the resolution of two related whistleblower claims against an NY -based urgent care management company.

On May 4, 2018, US District Judge Katherine P. Failla, Southern District of New York, approved a settlement agreement that resolves federal claims against City Practice Group USA, LLC (known as "CityMD"), which manages and operates approximately 88 urgent care professional practice affiliate offices, primarily in the New York City area. Under the agreement, CityMD will pay the US $6,606,251.40.  The settlement covered allegations that from 2010 to 2016, CityMD submitted false claims to Medicare for: (a) the identities of physicians who did not render the billed services; and (b) billing for lengthier and/or more complex Evaluation and Management services than were actually performed or supported by medical records.

On June 5, 2018, New York Attorney General Barbara Underwood announced that CityMD agreed to pay the State $883,000 to resolve claims that from 2010 to 2013 it improperly billed  NYSHIP, the State's health insurance plan for state and local government employees and their dependents, for "facilities fees," despite being advised that they were not reimbursable.

The case was initiated by a former CityMD employee under the "qui tam" provisions of the False Claims Act. Under the FCA, a whistleblower is usually entitled to 15 to 25% of the settlement amount with the government, plus attorneys' fees. The whistleblower received 20% of the NY settlement, her share of the federal recovery remains undecided, according to co-counsel Timothy J. McInnis, of NYC-based McInnis Law.

McInnis was brought into the case to assist the governments in making their intervention decisions. McInnis commended the whistleblower for her courage in bringing this matter to light. "As a result of this successful case, US and NY taxpayers benefitted substantially," McInnis stated.

The docket number for the case is case 14 Civ. 9933 (KPF) (S.D.N.Y.).

CONTACT: Timothy J. McInnis, Esq., 1-212-292-4573, [email protected]

SOURCE McInnis Law