MEMPHIS (CN) - A testosterone replacement clinic will pay $1.6 million to settle claims it billed Medicare and Tricare for medically unnecessary evaluation and office visits, the Justice Department announced.
Memphis-based Ageless Men's Health LLC operates about 30 testosterone replacement therapy clinics across the U.S. According to prosecutors, between 2009 and 2013, the company billed for a medically unnecessary office visit each time a testosterone shot was administered.
The allegations were first raised in a 2013 lawsuit filed under the whistleblower provisions of the False Claims Act.
Under federal law, Medicare and Tricare, which provides medical benefits for the military, reimburse medical providers only for procedures that are medically necessary.
"This settlement demonstrates our commitment to ensuring that Medicare and Tricare funds are not siphoned off by companies more concerned with bottom line profits than legitimate patient care," U.S. Attorney Edward Stanton III said in a statement announcing the settlement.
In addition to the $1.6 million payment, Ageless Men's Health agreed to enhanced accountability measures to be supervised by the Department of Health and Human Services' Office of Inspector General. These include monitoring by both internal and external auditors.
Ageless Men's Health has run its clinics to treat low testosterone levels in men since 2007, according its website.
The investigation was conducted by DHS, the FBI and the Department of Defense Criminal Investigative Service.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.