scales of justice

A New York otolaryngologist has agreed to pay more than $1.1 million to resolve civil allegations that he and his practice paid kickbacks and submitted false claims to federal healthcare programs for services provided to residents of adult homes in violation of the False Claims Act.

Rajendra Bhayani, M.D., and New York Otolaryngology & Aesthetic Surgery, with locations in Brooklyn and Queens, will pay $1,109,000; of that amount, $554,500 is restitution, according to the 14-page settlement agreement.

According to the U.S. Attorney’s Office for the Eastern District of New York, an FBI investigation found that from 2012 through 2016, the ear, nose and throat specialist allegedly paid cash tips, excessive rent and other improper remuneration to medical management companies to obtain exclusive access to bill for allergy testing and other medical services to residents of licensed, privately owned residential facilities in the district. This was a violation of the Anti-Kickback Statute, the Justice Department said. Bhayani then reportedly obtained payment for these services from Medicare and the Federal Employees’ Health Benefits Program, although the services actually were performed by a nurse practitioner, and some of the services performed were medically unnecessary.

The Health and Human Services Department Office of Inspector General also has entered into an integrity agreement with Bhayani and his practice. Among other things, the agreement requires compliance training that specifically addresses the Anti-Kickback Statute and a quarterly claims review that will be conducted by an independent review organization.