Crime - Sacto 911

Sacramento area pain clinic makes $860,000 settlement for allegations of Medi-Cal fraud

A Sacramento area pain management clinic made an $860,000 settlement to resolve allegations of submitting fraudulent Medi-Cal reimbursement claims.

Advanced Pain Diagnostic & Solutions Inc. and its owner, Dr. Kayvan Haddadan, were accused of knowingly submitting claims to the state Medicaid program for a service provider who was excluded from Medi-Cal coverage, according to a news release issued by the U.S. Attorney’s Office for the Eastern District of California.

Advanced Pain had clinics in Sacramento, Roseville and Rocklin when the company was alleged to have employed a nurse who was excluded from reimbursement, yet billed the nurse’s services to Medi-Cal under Haddadan’s billing number, implying he had provided the services, according to the release.

“Health care providers who do not follow the law need to know that we actively investigate this type of fraud and hold accountable those who take advantage of the programs for their own gain,” U.S. Attorney McGregor W. Scott said in the release.

The allegations against Advanced Pain were first brought by a whistleblower who worked as a nurse at Advanced Pain. The whistleblower will receive about $154,860 from the company’s fine, according to the release.