Monday, May 28, 2012

West Orange Doctor Cops Guilty Plea in 'Payment-For-Patients' Scheme

By Alicia Cruz
The Black Urban Times

A West Orange physician doctor pleaded guilty last week to one count of violating the federal health care program anti-kickback statute. The doctor, Dov Rand, admitted to taking part in the payment-for-patients scheme that began in 2010.

Rand, whose practice was located in the 600 block of Eagle Rock Avenue, referred patients to the Orange Community MRI, LLC on Henry Street in Orange, New Jersey in exchange for cash. On at least one occasion, the government said the doctor received $920 for the referrals he made.

OCM provided services to patients that included magnetic resonance imaging ("MRIs"), ultrasound imaging ("Ultrasounds"), echocardiograms, computed axial tomographies ("CAT Scans" or "CT Scans"), and dual-emission X-ray absorptiometries ("DEXA Scans"). OCM is a Medicare- and Medicaid-approved provider of, among other things, the Diagnostic Tests.

The federal indictment says OCM paid Rand for each Medicare or Medicaid beneficiary MRI and certain privately insured patient MRIs RAND referred to the facility. On more than one occasion, Rand met with the informant and accepted white envelopes filled with cash for his patient referrals in October and November 2011.

On Dec. 13, 2011, Rand, of Franklin Lakes, was arrested along with 12 other New Jersey doctors and nurse practitioner, Jose Castaneda. All were charged with accepting cash kickback payments from OCM in exchange for patient referrals. On December 8, 2011, Chirag Patel, the executive director of OCM, was also arrested for participating in the scam. Charges against Patel, 36, of Warren, and Rand's other co-conspirators are pending.

Rand, who entered his guilty plea before U.S. District Judge Claire C. Cecchi in Newark federal court, agreed to forfeit $8,325 as property derived from his criminal conduct. Fishman said the 47-year-old doctor is scheduled for sentencing on Sept. 13, 2012 where he faces a maximum penalty of five
years in prison and a $250,000 fine.

Fishman praised special agents of U.S. Department of Health and Human
Services, Office of Inspector General, under the direction of Special Agent Tom O’Donnell, for leading the investigation, and thanked Centers for Medicare and Medicaid Services for its vital role at the investigation’s inception.

Assistant U.S. Attorneys Joseph Mack and Scott B. McBride of the U.S. Attorney’s Office Health care and Government Fraud Unit in Newark represented the government. Rand was defended by Newark attorney, Anthony Pope.

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