A Stamford doctor and his Greenwich-named medical practice will pay $866,539 to settle federal and state fraud allegations tied to COVID-19 billing and phantom blood tests.
Dr. Steven Murphy, owner of Murphy Medical Associates and Diagnostic and Medical Specialists of Greenwich, also agreed to a three-year ban from all federal health care programs, the U.S. Attorney's Office for the District of Connecticut announced. Daily Voice first reported the settlement on Oct. 15.
The allegations cover September 2019 through April 2022 and fall into two categories: improperly tapping a COVID-19 relief fund meant for uninsured patients, and billing Medicare and Medicaid for lab tests the government says were never performed.
COVID relief fraud allegations
During the pandemic, Congress funded a program through the Health Resources and Services Administration (HRSA) to reimburse providers for testing, treatment and vaccinations for people without insurance. Providers had to confirm patients lacked coverage before requesting payment.
Federal officials allege Murphy's practices had insurance cards and other records showing some patients carried private or government coverage. The practices allegedly changed those patients' insurance information in their electronic records to "Covid19 HRSA Uninsured," then collected reimbursement through the program, U.S. Attorney David Sullivan said, according to the Stamford Advocate.
Phantom lab test allegations
The second set of claims involves Murphy's in-house lab, which performed blood tests on patients with possible COVID-19 exposure and on patients receiving routine care such as annual physicals.
The lab used groups of blood tests known as panels but billed Medicare or Medicaid separately for each individual test within a panel, according to Attorney General William Tong. The government alleges the lab sometimes lacked the reagents needed to complete certain tests. Officials say the practices billed for tests the lab never performed.
The Connecticut Attorney General's Office launched its investigation into Murphy's billing practices in May 2020.
Settlement terms
The agreement resolves allegations under both federal and state False Claims Acts. Murphy and both practices agreed to the payment and to exclusion from all federal health care programs and the Connecticut Medical Assistance Program for three years.
"Medical overbilling erodes public trust, wastes vital public resources, and is against the law," Tong said in a statement.
No public response from Murphy or his legal counsel appears in available records as of the settlement announcement.
