CityMD Settles $12 Million Allegations Over False Claims for COVID-19 Testing

CityMD, encompassing W City Medical, Summit Medical Group, Summit Health Management, and Village Practice Management, has agreed to a $12.04 million settlement to address allegations of violating the False Claims Act. The charges stem from CityMD’s submission of false claims for COVID-19 testing to the Health Resources & Services Administration (HRSA) program designed for uninsured patients from February 2020 to April 2022.

The HRSA program reimbursed healthcare providers for COVID-19 testing, treatment, and vaccination of uninsured individuals. The Justice Department claims CityMD submitted claims for insured patients, failing to verify insurance status and causing outside labs to submit false claims. The company received credit for voluntary disclosure and cooperation during the investigation.

U.S. Attorney Philip R. Sellinger emphasized the importance of safeguarding funds intended for uninsured Americans, while Principal Deputy Assistant Attorney General Brian M. Boynton highlighted the commitment to ensuring the proper use of pandemic relief programs.

The settlement also resolves a whistleblower lawsuit filed by Steven Kitzinger, a CityMD patient, who will receive over $2 million from the recovery. The resolution involved collaboration between multiple divisions of the Justice Department and the Department of Health and Human Services Office of Inspector General. The COVID-19 Fraud Enforcement Task Force continues to address and prevent pandemic-related fraud.