San Diego doctor and clinic settle $3.8 million fraud allegations

SAN DIEGO, California — Dr. Janette J. Gray, of San Diego, and her former medical practice, The Center for Health & Wellbeing, have agreed to pay $3.8 million to settle allegations of violating the False Claims Act. The allegations involve submitting false claims to Medicare and TRICARE programs over a decade.

Dr. Gray and The Center, which promoted alternative treatments such as IV infusion and hormone therapy, allegedly billed for services not covered by Medicare and TRICARE by misrepresenting providers and services, "unbundling" procedures, and billing for unnecessary services, according to a press release from the U.S. Attorney’s Office for the Southern District of California. As part of the settlement, Dr. Gray will be excluded from participating in federal health care programs for five years.

“There’s no price tag on the integrity of our healthcare system,” said U.S. Attorney Tara McGrath. Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, added that the settlement holds Dr. Gray accountable for actions that cost taxpayers millions. The investigation was a coordinated effort involving the U.S. Attorney’s Office, the Department of Health and Human Services, DCIS, and the FBI.

The resolution underscores the government's commitment to combating healthcare fraud, with the False Claims Act being a key tool in this effort. The claims resolved by the settlement are allegations only, with no determination of liability.