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California vascular physician Dr. Feliciano Serrano and his practice, Serrano Kidney & Vascular Access Center, have agreed to pay more than $6.73 million to resolve allegations of billing Medicare for unnecessary medical procedures, federal authorities announced this week.

The settlement addresses allegations spanning from 2016 to 2024, with payments directed to both the federal government and the State of California. The U.S. Department of Justice asserted that Dr. Serrano performed unwarranted vascular interventional procedures on 20 Medicare beneficiaries, violating the False Claims Act.

According to prosecutors, Dr. Serrano conducted medically unnecessary dialysis access interventions, including angioplasty and stent procedures, on 18 patients over an eight-year period. The government claims he routinely scheduled interventions without waiting for complications to arise, repeatedly performed procedures every few days or weeks despite limited effectiveness, and in some cases provided no clinical benefit to patients.

The allegations extend to peripheral artery disease procedures performed between 2019 and 2024. Federal authorities contend that Serrano conducted unnecessary stent and atherectomy interventions on 17 patients, some of whom had only mild or no stenosis. In certain cases, patients who reported pain in just one leg received procedures on both legs, and some were allegedly warned of amputation risks despite having only mildly symptomatic conditions.

Government officials further alleged that Dr. Serrano treated vessels that did not qualify for intervention under accepted medical standards, exaggerated the degree of stenosis in patient documentation, and falsely recorded symptoms and conservative therapy measures in medical records.

Under the terms of the settlement, Dr. Serrano will pay approximately $6.51 million to the United States and nearly $229,000 to California.

The case was initiated through a whistleblower complaint filed by Lincoln Analytics Inc. under the qui tam provisions of the False Claims Act. As a reward for exposing the alleged fraud, the company will receive approximately $976,000 from the federal portion of the recovery. The whistleblower lawsuit is captioned “United States and State of California ex rel. Lincoln Analytics Inc. v. Dr. Feliciano Serrano, et al.,” filed in the Central District of California.

This resolution reflects a broader push by the Justice Department to combat healthcare fraud affecting federal programs, according to officials involved in the case. The settlement involved coordination between multiple agencies, including the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, the California Department of Justice, and support from the Department of Health and Human Services Office of Inspector General.

“Physicians should not perform and bill for unnecessary and excessive interventions,” said Assistant Attorney General Brett A. Shumate in a statement about the case. First Assistant U.S. Attorney Bill A. Essayli added that the settlement demonstrates the government’s continued commitment to pursuing false claims that misuse taxpayer funds.

The Serrano settlement follows a pattern of increased federal scrutiny of healthcare providers. Medicare fraud cases have surged in recent years, with the Justice Department recovering billions of dollars annually from healthcare companies and practitioners found to have submitted false claims to government healthcare programs.

For dialysis patients, the impact of unnecessary procedures extends beyond financial concerns to patient safety issues, as each intervention carries risks of complications, infections, and reduced quality of life. Similarly, peripheral artery disease patients subjected to unwarranted procedures face unnecessary recovery periods and potential complications.

The government emphasized that the False Claims Act remains a critical tool in its arsenal for pursuing fraud, waste, abuse, and mismanagement in federally funded healthcare programs.

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11 Comments

  1. Patricia Lee on

    Performing unnecessary medical procedures for profit is a betrayal of the public trust. I hope the victims receive justice and that this case serves as a deterrent to others who may be tempted to engage in similar misconduct.

  2. Elizabeth Thompson on

    Unnecessary medical procedures are not only wasteful, but can also be harmful to patients. I’m glad to see this practice being held accountable, but hope the victims receive proper compensation and care moving forward.

  3. John X. Garcia on

    This appears to be a concerning case of fraudulent billing and unnecessary medical procedures. It’s good to see the authorities holding this practice accountable. Patients deserve quality care, not profiteering at their expense.

    • Michael A. Hernandez on

      Absolutely. Misusing Medicare funds is a serious offense that needs to be addressed firmly. Hopefully, this settlement sends a strong message and deters similar abuses in the future.

  4. Robert Jackson on

    This is a troubling case that highlights the need for more robust fraud detection and accountability in the healthcare industry. Procedures should be driven by medical necessity, not profit motives. I hope the settlement helps deter future misconduct.

  5. William Rodriguez on

    Billing Medicare for unnecessary procedures is a serious abuse of the system. I’m glad the authorities are taking action, but hope the punishment fits the crime. Patients deserve quality, ethical care, not exploitation.

    • Patricia Brown on

      Agreed. This kind of fraud undermines public trust in the healthcare system. Robust oversight and stiff penalties are crucial to prevent similar abuses in the future.

  6. Noah Johnson on

    Performing unwarranted medical interventions is a major breach of trust. I hope the patients affected by this receive proper care and compensation. Strict oversight is clearly needed to prevent such egregious exploitation of the healthcare system.

    • Jennifer Thompson on

      Well said. Doctors have a duty of care, and violating that for financial gain is unacceptable. Rigorous auditing and enforcement seem essential to protect vulnerable patients and public funds.

  7. Linda Brown on

    This case highlights the importance of transparency and accountability in healthcare. Patients should be able to trust that their doctors are acting in their best interests, not their own financial gain. Stricter regulations may be needed to prevent such exploitation.

    • Mary Martinez on

      Well said. Maintaining the integrity of public healthcare programs is crucial. Robust oversight and harsh penalties for fraud are necessary to protect vulnerable patients and public funds.

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