Remote patient monitoring firm settles false claims lawsuit for $1.29 million

Health Wealth Safe, Inc. and Dr. Subodh Agrawal have agreed to pay $1.29 million to settle allegations related to false claims submitted to Medicare. The settlement addresses accusations that the company knowingly billed Medicare for services that did not comply with its requirements.

U.S. Attorney Theodore S. Hertzberg emphasized the seriousness of such actions, stating, “Knowingly billing Medicare for services that do not meet Medicare’s requirements is a fraud against taxpayers.” He affirmed the commitment of his office to enforce the False Claims Act in order to recover government payments from misconduct.

Kelly Blackmon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), commented on the responsibilities of healthcare professionals: “Healthcare professionals have a sworn duty to prioritize patient health and to ensure all services billed to the federal government are fully compliant with program requirements.”

The investigation originated from a whistleblower lawsuit filed by former employees under the False Claims Act, known as a qui tam suit. This federal law imposes civil liability on individuals or entities that submit false claims to the government or its contractors, allowing whistleblowers who report fraud to share in any recovery obtained by the government.

The United States alleged that Health Wealth Safe presented claims for remote physiologic monitoring (RPM) services that were not reimbursable due to non-compliance with Medicare's requirements between September 2019 and January 2021. These services involved using technology for monitoring patients' physiological metrics without necessary automatic reporting devices.

The lawsuit was resolved in the U.S. District Court for the Northern District of Georgia under United States ex rel. Chavous v. Health Wealth Safe, Inc., No. 1:22-cv-02553. As part of this settlement, the relator will receive $238,650 plus attorney’s fees.

The case was investigated by both the U.S. Attorney’s Office for the Northern District of Georgia and HHS-OIG, with Assistant U.S. Attorney Anthony DeCinque leading the civil settlement process.

It is important to note that these resolved claims are allegations only; no determination of liability has been made.

For further information, contact can be made through USAGAN.PressEmails@usdoj.gov or (404) 581-6185 at the U.S. Attorney’s Public Affairs Office.