Desert Regional Medical, Tenet Settle False Claims Allegations

PALM SPRINGS, CA — Desert Regional Medical Center has agreed to a settlement involving allegations that it violated the False Claims Act by knowingly charging Medicare for implanting unnecessary cardiac monitors in patients, the U.S. Justice Department announced Tuesday.

Tenet Healthcare Corporation and its affiliated DRMC agreed to pay $1.41 million to settle the claims.

“Providers that bill for unnecessary services and devices contribute to the soaring cost of health care,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice holds accountable those providers that impose unnecessary treatments upon patients and pass the inflated costs on to federal health care programs.”

The investigation focused on DRMC cardiologists who implanted the unnecessary cardiac monitors (often called loop recorders) from 2014 to 2017, according to the DOJ.

Medicare only reimburses services and treatments that are reasonable and medically necessary.

“Invasive medical procedures, such as implanting heart monitors, are not without risk,” said Timothy B. DeFrancesca, special agent in charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Therefore, when these procedures are medically unnecessary, as contended in this case, people in government health programs are put at needless peril, and taxpayers end up with the bill.”

The settlement resolves allegations filed in a lawsuit by Michael Grace, a former DRMC employee, under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery, according to the DOJ.

As part of the settlement, Grace will receive $240,789 as his share of the government’s recovery.

Tenet Healthcare spokesperson Todd Burke released a statement when asked for comment. It reads in full: “We have reached an agreement with the Civil Division of the U.S. Department of Justice to settle a qui tam lawsuit for approximately $1.4 million related to a portion of cardiac loop recorder devices implanted from 2014 to 2017 at Desert Regional Medical Center. We stand behind the efforts of our team — our hospital and physicians identified and took steps to address this matter prior to the filing of the lawsuit and remain committed to full compliance with all federal healthcare program requirements.”