Drug Treatment Clinic Owner to Pay Settlement in FCA Whistleblower Lawsuit

At first glance, a recent settlement agreement by the owner and CEO of two Colorado-based behavioral health and substance abuse treatment clinics may not seem like a lot. However, it can serve as a reminder that the government is continuing its crackdown on those who take advantage of the ongoing opioid crisis.

The case involves Springbok Health Inc., a behavioral health treatment center with two Colorado locations, and Mark Jankelow, who allegedly billed Medicare and Medicare for expensive medical evaluations and management services when, at most, less expensive treatment were provided.

Jankelow agreed to pay at least $125,000, an up to as much 335,494 over a period of five years plus interest to resolve allegations they violate violated the False Claims Act (FCA). The settlement is based on the defendants’ ability to pay and resolves an action brought under the qui tam or whistleblower provisions of the FCA. The case is captioned United States ex rel. Chaudhry v. Springbok Health Inc.

The Relator, identified in court documents as Melissa Chaudhry, filed the action in the United States District Court for the District of Colorado on April 26, 2018. The services for which Springbok and Jankelow allegedly overcharged were rendered between Jan. 1, 2017, and Dec. 31, 2019. She will receive at least $22,500, and up to $60,389 of the settlement.

The government has made it clear that behavioral health and substance abuse treatment centers are in its crosshairs.  The Health Law Offices of Anthony C. Vitale handles matters relating to whistleblower representation as well as Medicare and Medicaid fraud defense. For more information, contact us at 305-358-4500 or email info@vitalehealthlaw.com.