LOS ANGELES – The Department of Justice announced today that Nassir Medical Corp. and its owner, Dr. Youram Nassir, have agreed to pay the United States and California $3,356,565 to settle False Claims Act allegations that they defrauded public health care programs by billing for oncology drugs and services that were not actually provided to patients.
Nassir Medical Corp., which does business as Cancer Care Institute, is a hematology and oncology practice based in in the Mid-Wilshire area of the City of Los Angeles. This medical office specializes in treating cancer patients and such treatment often requires physicians to prescribe, dispense, infuse, and administer a variety of oncology drugs. Medicare and Medi-Cal reimburse physicians both for the cost of drugs themselves and for the cost of infusing and administering those drugs to patients.
Between January 2010 and December 2013, Nassir Medical Corp. and Nassir allegedly violated the False Claims Act by submitting bogus claims to Medicare and Medi-Cal, according to this case’s settlement agreement. The defendants allegedly billed public health programs for drugs that were not actually purchased, dispensed, or administered, and for infusion services that were not actually provided. The defendants have agreed to pay $2,377,675.51 to the United States and $978,907.49 to California.
Nassir Medical Corp. and Nassir also have entered into an integrity agreement with the United States Department of Health and Human Services, Office of Inspector General.
This settlement resolves allegations originally brought in a lawsuit filed in 2016 by Kenneth Bryan, a retired health care consultant and administrator, under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions permit private parties to sue on behalf of the government for false claims for government funds and to share in any recovery. Mr. Bryan will receive more than $475,000 from the federal government as his share of the settlement amount.
Assistant United States Attorney Ross M. Cuff of the Civil Fraud Section represented the United States in this matter, which was investigated by agents from the United States Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned United States, et al., ex rel. Bryan v. Nassir Medical Corp., et al., 16-cv-2289-JAK (C.D. Cal.). The claims resolved by the settlement are allegations only. There has been no determination of liability.