Spokane doctor to pay nearly 100K for alleged participation in medical equipment kick-back scheme
A Spokane doctor ordered knee braces for a woman without a knee and other medical equipment for a patient who had died earlier that week as part of a kick-back scheme, according to a complaint filed in federal court.
Earlier this month, Daniel Case agreed to pay $95,000 to resolve the allegations that, while working for RediDoc LLC, he was compensated for ordering unnecessary medial equipment and billing Medicare, Medicaid and other federal programs. Case’s attorney did not immediately respond to a request for comment.
The owners of RediDoc pleaded guilty to conspiracy to violate the federal anti-kickback statute in May 2022.
RediDoc hired telemarketing companies to call federal health care program beneficiaries to talk to them about getting durable medical equipment for free.
The calls were recorded, then provided to doctors like Case, who would review the calls and sign orders for the equipment. The doctors were paid for each order they signed.
Case expressed “concern” regarding the business’ legitimacy but continued to work with RediDoc, according to the complaint filed in United States District Court for the Eastern District of Washington.
The doctor signed an order for left and right knee braces for a woman who had an above-the-knee amputation of her right leg, according to the complaint. He also signed three orders for a patient who had died two days previously, according to the complaint.
He was paid approximately $66,727 for the orders he signed.
“Kickback schemes incentivize physicians to place financial gain over patient care. RediDoc relied upon the willing participation of doctors around the country to sign orders prescribing equipment or medication for payment,” U.S. Attorney Vanessa Waldref wrote in a statement. “This settlement is a signal to physicians that they will be held accountable for engaging in kickback schemes, and that they stand to lose more in the long run than will be gained in the short term by participating in an unlawful practice.”