Orthopedic and Reconstructive Center of Oklahoma settles fraud claims for $3.5M

An Oklahoma City surgery center has paid $3.5 million to settle health care fraud claims by the federal government, prosecutors said Monday.

The case began in 2000 when three former Orthopedic and Reconstructive Center of Oklahoma workers filed a secret lawsuit in federal court in Oklahoma City. It became public in May 2007 when federal prosecutors intervened.

The lawsuit accused the center of filing thousands of false claims with Medicare, Medicaid and TRICARE/CHAMPUS for medical procedures that were not performed.

Some claims for services by hand surgeon Dr. Houshang Seradge were submitted when he was not even in the state, according to prosecutors. Those services instead were performed by physician’s assistants or others on Seradge’s behalf, according to prosecutors.

Seradge and three other center employees agreed not to be involved in any federal health care programs for three years as part of the settlement, but there was no admission of wrongdoing.

"Settling the case was a business decision and in the best interest of the practice and the patients,” said Drew Neville, an attorney for the center.

The lawsuit was dismissed Monday after the government got the center’s settlement payment.

U.S. Attorney John Richter said health care fraud will not be tolerated.

"Health care providers can and will be held accountable for their billing practices,” Richter said. "We are firmly focused on vigorously pursuing allegations of fraud and abuse, which divert the scarce resources of Medicare and other government health care programs away from necessary patient care.”