Physicians and Former Hospital Executive Settle for Over $880,000 in Kickback Scheme

The Department of Justice recently announced a significant settlement involving four physicians and a former hospital administrator. Collectively, they have agreed to pay over $880,000 to settle allegations under the False Claims Act for receiving kickbacks in exchange for laboratory service referrals, violating the Anti-Kickback Statute. This statute is a critical safeguard in the healthcare industry, designed to ensure that medical decisions are made in the best interest of patients, not influenced by improper financial incentives.

The settlements implicate two physicians from Dallas, Drs. Linh Nguyen and Thuy Nguyen, and Dr. Heriberto Salinas from Cleburne, Texas. They were accused of receiving kickbacks from management service organizations in return for ordering laboratory tests from various healthcare facilities. Drs. Linh Nguyen and Thuy Nguyen agreed to pay $404,813, while Dr. Salinas agreed to pay $150,386 for their respective violations.

Moreover, Peggy Borgfeld, the former executive at Little River, a central figure in this case, agreed to pay $325,000 plus additional contingent payments. Borgfeld allegedly facilitated the kickback scheme by paying commissions to recruiters who used MSOs to provide illegal payments to doctors. Her settlement also includes a five-year exclusion from participating in federal healthcare programs.

This case, arising from a government investigation, underscores the ongoing efforts to combat healthcare fraud and enforce compliance with federal healthcare program standards.