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Kansas Doc Pays $5.8M to Settle Third False Claims Act Case in 20 Years

Analysis  |  By John Commins  
   May 30, 2019

Joseph P. Galichia MD, the former owner of Wichita-based Galichia Medical Group PA, had reached FCA settlements with the federal government in 2000 and 2009.

For the third time since 2000, a Kansas cardiologist has agreed to a multimillion dollar False Claims Act settlement with the federal government.

This week, Joseph P. Galichia MD, the former owner of Wichita, Kansas-based Galichia Medical Group PA, agreed to pay $5.8 million to resolve allegations that he improperly billing federal healthcare programs for medically unnecessary cardiac stent procedures from 2008 through 2014, the Department of Justice said.

The allegedly false billings were sent to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program, DOJ said.

"Patient safety is critically important," said Stephen McAllister, U.S. Attorney for the District of Kansas. "Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs."

Under the settlement, Galichia also agreed to a three-year ban from participating in any federal healthcare programs.

Galiachia sold his practice to HCA Wesley Medical Center in June, 2018.

The latest settlement stems from a whistleblower lawsuit filed by Aly Gadalla, MD, that the federal government joined in 2014. Gadalla will get $1.16 million from the settlement.

Galiachia emailed a statement to HealthLeaders, denying any wrongdoing but said he agreed to the settlement "because fighting the action was taking up far too much of his time and energy."

"Further, after nearly seven years, it simply became too costly to keep defending against these false accusations. Dr. Galichia has devoted his entire career to the practice of medicine and the cardiovascular care of many, many Kansans," the statement read. "Sadly, he feels this has been a matter of legal bullying and calls on Congress to prevent prosecutors in the future from attempting to practice medicine in the courts or by threat of legal action against well-meaning and competent physicians."

This is the third False Claims Act settlement with Galichia and GMED, DOJ said.

In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation, DOJ said.

In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted up-coded claims, double billed for the same services, and billed for services they didn't provide.   

“Performing medically unnecessary procedures puts patients at risk and defrauds federal healthcare programs.”

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.

Photo credit: Mark Van Scyoc / Shutterstock


KEY TAKEAWAYS

This week, Joseph P. Galichia MD and Galichia Medical Group agreed to pay $5.8 million to resolve allegations that they improperly billed for medically unnecessary cardiac stent procedures from 2008 through 2014.

In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation.

In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted up-coded claims, double billed, and billed for services they didn't provide.  

Galiachia denies any wrongdoing but settled 'because fighting the action was taking up far too much of his time and energy.'


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