CEO Blows the Whistle on Clinic Kickback Schemes

A North Dakota clinic is accused of participating in kickback schemes that have cost the federal government millions of dollars in fraudulent Medicare and Medicaid claims.

A whistleblower complaint brought against Bismarck’s Mid Dakota Clinic and its building partnership alleges that doctors referred patients to the clinic’s surgical center, allowing them to increase their pay in the form of profits from the center. The document says Mid Dakota Clinic had a similar kickback arrangement with another physician group in Bismarck.

The suit was filed in January 2017 by former Mid Dakota CEO Jeffrey Neuberger and unsealed last month.

The federal anti-kickback law is meant to prevent abuses that occur when a person profits from a patient referral. That often includes ordering unnecessary procedures.

Lawyers for Neuberger and Mid Dakota Clinic did not immediately respond to phone messages.


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