A Kernersville, N.C., clinic owner has agreed to pay $4.7 million to resolve healthcare fraud allegations, according to a May 3 news release from the Justice Department. The payment is part of a consent judgment and is subject to a separate agreement regarding the defendant’s ability to pay.
What happened?
- Steven Osbey, co-owner of clinic Reign & Inspirations along with Aljihad Shabazz, was accused of billing North Carolina Medicaid for in-home physician visits that never occurred.
- Mr. Osbey and Mr. Shabazz allegedly orchestrated an extensive healthcare fraud scheme by submitting, or directing others to submit, false claims for these non-existent visits.
- In total, the clinic allegedly billed for more than 30,000 hours of in-home physician services. On some days, they reportedly claimed the physician performed over 100 visits, each lasting one hour, an amount of work the Justice Department called “physically impossible.”
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