settlement-reached-former-van-nuys-doctor-and-others-to-pay-15-million-in-kickback-case

Former Van Nuys Doctor and Others to Pay $15 Million in Kickback Case

Former Van Nuys physician Mohammad Rasekhi, along with his spouse and business partner Sheila Busheri, have agreed to a $15 million federal settlement over allegations of submitting false claims to Medicare and Medi-Cal. The U.S. Department of Justice accused Rasekhi, Busheri, the medical center, and a laboratory they co-owned of defrauding Medicare and Medicaid from 2014-22, according to the U.S. attorney’s office.

Allegations and Denials

Rasekhi, who recently surrendered his medical license due to sexual harassment accusations, was the founder and chief medical officer of Southern California Medical Center (SCMC) with clinics in various locations. They allegedly paid marketers illegal kickbacks to refer patients and gave perks to outside clinics for lab test referrals, violating federal laws against self-referrals. Busheri, the CEO of SCMC, denies all allegations but stated that the high cost of litigation led to the decision to settle.

Legal Consequences

Under the settlement agreement, Rasekhi, Busheri, and their businesses will pay $10 million to the government and $5 million to former staff who filed a whistleblower suit. Additionally, California will receive $7 million for related Medi-Cal claims. Brian M. Boynton of the Justice Department’s Civil Division emphasized the importance of ensuring healthcare providers make unbiased decisions for Medicare and Medicaid beneficiaries.

Surrender of Medical License

Rasekhi surrendered his medical license after accusations of sexual abuse surfaced, choosing to retire from medicine rather than contest the allegations. His attorney stated that he denied all accusations, but opted to waive his rights to a hearing.

Corinne Purtill, a science and medicine reporter for the Los Angeles Times, shared this breaking news, shedding light on the legal implications and ethical concerns surrounding healthcare fraud cases. As a native of Southern California and a Stanford University graduate, Purtill’s expertise in reporting on complex medical issues adds depth to this developing story, capturing the attention of readers seeking insight into the healthcare industry’s legal challenges.

Through Purtill’s detailed reporting, readers gain a comprehensive understanding of the allegations against Rasekhi and Busheri, the legal ramifications of their actions, and the impact on former staff members and California’s healthcare system. This story serves as a reminder of the importance of transparency and accountability in healthcare practices, highlighting the consequences of fraudulent behavior within the medical community.