Maryland Oncology Practice Agrees to Pay More Than $1.4M to Resolve False Claims Act Allegations of Fraudulent Billing

Baltimore, Maryland - A Maryland oncology practice and its owner agreed to pay more than $1.4 million to settle fraudulent billing allegations.

Progressive Oncology & Hematology, LLC (Progressive), an oncology practice offering chemotherapy services in Frederick, Maryland, and its owner and sole provider, Mouhamad Bazzi, MD, agreed to pay the United States $1.45 million to resolve allegations that they violated the False Claims Act.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the settlement with Special Agent in Charge Maureen Dixon, Department of Health and Human Services Office of Inspector General (HHS-OIG), and Special Agent in Charge Nate Landkammer, Department of Veterans Affairs Office of Inspector General (VA OIG).

According to the United States, Progressive and Bazzi knowingly submitted claims to Medicare, Medicaid, and the U.S. Department of Veterans Affairs (VA) for reimbursement for chemotherapy drugs that the defendants did not pay for. Specifically, the government alleges Progressive and Bazzi submitted claims for reimbursement for drugs that came from charitable organizations or through grant programs for specific patients at no expense to the defendants.

Additionally, the government further alleges Progressive and Bazzi directed that wastage (small amounts of extra medication) from single-use vials of drugs intended for one patient be split across two or more patients. The defendants then submitted claims as if each patient received their own single-use vial. It is also alleged that Progressive and Bazzi billed federal and state health insurance programs for chemotherapy drugs Bazzi prescribed but never administered to patients at the practice.

"Seeking reimbursement for chemotherapy drugs that were not paid for or not administered by the practice or this doctor is simply intolerable," Hayes said. "This settlement reflects this office's commitment to holding wrongdoers accountable who attempt to profit at the expense of the public fisc."

"It is incumbent upon all health care providers who participate in the Medicare program to correctly bill for services provided to beneficiaries," Dixon said. "HHS-OIG makes it a priority to work with the U.S. Attorney's Office, VA OIG and other law enforcement partners to evaluate and pursue alleged inaccurate billings submitted to federal health care programs."

"This settlement demonstrates the VA OIG's unwavering commitment to ensuring the integrity of claims submitted to VA healthcare programs," Landkammer said. "The VA OIG thanks the US Attorney's Office and the Department of Health and Human Services OIG for their efforts in this investigation."

U.S. Attorney Hayes commended the HHS-OIG and VA OIG for its work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Kimberly S. Phillips and Roann Nichols who handled this case.

The United States' settlement in this matter illustrates the government's emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints for all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The claims resolved by this settlement are allegations only and there has been no determination of liability.

For more information about the Maryland U.S. Attorney's Office, its priorities, and resources available to report fraud, visit justice.gov/usao-md and justice.gov/usao-md/report-fraud.

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