Medicare Compliance & Reimbursement

Feds unearth massive Medicare fraud scheme.

Hiring medical doctors to work in a chiropractic clinic doesn't automatically qualify the facility's services for Medicare reimbursement.

Paul Neumann and Timothy Neumann, the owners of several chiropractic and medical clinics in Ohio, face conspiracy to commit money laundering and health care fraud charges, the Department of Justice (DOJ) recently announced. The two men owned and operated MedBack chiropractic/medical clinics in Bowling Green, Toledo, Fremont, Bryan, Sandusky and Oregon, OH.

From June 1997 to October 2000, the Neumanns allegedly submitted more than $4.8 million in fraudulent billings for non-covered chiropractic services to Medicare, Medicaid and other insurers. The defendants purportedly hired medical doctors to work in each clinic and miscoded Medicare and Medicaid claims. The two men attempted to conceal the fact that the clinics employed chiropractors who provided non-covered chiropractic services, the DOJ alleges.