Doctor Settles $625K Kickback Allegations with DOJ

Dr. Eric Troyer and Troyer Medical Inc. agree to pay $625,000 to resolve kickback allegations related to TRICARE fraud.Photo byCDConUnsplash

Dr. Eric Troyer of Landis, North Carolina, and his medical practice, Troyer Medical Inc. (TMI), have agreed to pay $625,000 to resolve allegations of violating the False Claims Act by participating in a laboratory kickback scheme.

The U.S. Department of Justice (DOJ) announced the settlement today.

The settlement includes $429,254 to be paid to the United States and an additional $195,746 to the State of North Carolina, which co-funded claims through the North Carolina Medicaid program.

The allegations involve kickbacks that Dr. Troyer and TMI received from a laboratory in Anderson, South Carolina, between August 2015 and November 2021 in exchange for patient referrals, the DOJ says.

According to the DOJ, the kickbacks were disguised as payments for phlebotomy services, office space rental, and equipment leasing. These arrangements led to the submission of fraudulent claims to Medicare, Medicaid, and TRICARE.

TRICARE, as described on its official website, is a healthcare program managed by the United States Department of Defense's Military Health System.

It provides civilian health benefits for active-duty military personnel, military retirees, and their dependents, as well as certain members of the Reserve Component.

The Anti-Kickback Statute prohibits offering or accepting payments to induce referrals for services covered by federally funded programs like Medicare, Medicaid, and TRICARE.

Violating this statute undermines the integrity of healthcare systems by allowing financial interests to compromise medical decision-making, according to DOJ officials.

“Kickbacks to healthcare providers jeopardize both patient care and the integrity of taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton.

"We will continue to hold accountable those who engage in such unlawful practices."