NEWARK, NJ — Dr. Moustafa Moustafa and his medical practice, South Carolina Nephrology and Hypertension Center Inc., have agreed to pay $585,540 to settle allegations of receiving illegal kickbacks. The settlement resolves claims under the False Claims Act that Moustafa and his practice received payments in return for referring patients for laboratory tests, violating the Anti-Kickback Statute.
U.S. Attorney Philip R. Sellinger for the District of New Jersey and Principal Deputy Assistant Attorney General Brian M. Boynton announced the settlement. Both officials stressed that kickbacks have no place in the healthcare system and can undermine the integrity of public healthcare programs.
The Anti-Kickback Statute prohibits financial inducements to healthcare providers for referrals of items or services covered by federal healthcare programs like Medicare and Medicaid. The law aims to ensure that healthcare decisions are made in the best interests of patients, not influenced by improper financial incentives.
The allegations resolved today include multiple instances where Moustafa and his practice received payments disguised as office rent and phlebotomy payments from a clinical laboratory in Anderson, South Carolina. Additionally, Moustafa allegedly received remuneration in the form of free clinical staff from a lab in Kenilworth, New Jersey. The doctor also allegedly accepted payments masked as consulting and medical director fees from Ralston Health Group, Inc., in return for ordering tests from various laboratories.
U.S. Attorney Adair F. Boroughs for the District of South Carolina said, “Kickbacks raise costs for taxpayers and undermine healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”
Various agencies, including the Department of Health and Human Services Office of Inspector General, the FBI, and the Department of Defense Office of Inspector General, assisted in the investigation. The settlement does not constitute a determination of liability.