AUSTIN, Texas — Austin Emergency Center has agreed to pay $429,231 to settle allegations of overbilling under the False Claims Act. The settlement addresses claims that the center overcharged the Federal Employees Health Benefit Program for COVID-19 tests and services.
The allegations involve Austin Emergency Center, LLC, Austin ER, LLC, AEC ER 4, LLC, Pahala Ventures, LLC, AEC Physicians, PLLC, and AEC Pflugerville, LLC. The United States alleged that the center charged the Federal Employees Health Benefit Program more than cash-paying patients for certain COVID-19 tests from June 18, 2020, to April 2, 2021, and up-coded evaluation and management services for drive-through COVID-19 screening from April 13, 2020, to April 2, 2021, according to a press release from the U.S. Attorney’s Office for the Western District of Texas.
“Financially capitalizing on crisis and the fear and misfortune of others is at the heart of every unlawful act committed by the worst elements of our society,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “Doing so under the guise of being a healthcare provider represents the worst of who we are and further erodes our collective trust in the healthcare system.”
Special Agent in Charge Derek M. Holt of the U.S. Office of Personnel Management Office of the Inspector General added, “During a public health emergency, providers exploited federal employees’ health benefits for profit at the taxpayers’ expense.”
The investigation was led by the Office of Personnel Management Office of the Inspector General, and the settlement was negotiated by Assistant U.S. Attorney Thomas Parnham. The claims resolved by the settlement are allegations only, and there has been no determination of liability, stated the source.