Several defendants appeared in a Grand Rapids federal court to answer for fraud charges that related to Medicare kickbacks. FBI agents raided a spine and pain office. They took many items from the closed office and loaded them into a rental truck. The "Anti-Kickback" law, Michigan's Medicaid False Claims Act of 1977, states that doctors cannot receive a kickback or a "bonus" for referring a patient to another doctor for treatment.

The indictment against the defendants alleged that one of the doctors owned and operated outpatient rehabilitation facilities, medical clinics and home health care companies, and that these businesses paid outside health care providers and employees for patient referral.

The indictment named several of one doctor's companies, including a rehab services company that has facilities around the state. One of the doctors was the manager of the rehab services company. Allegedly, the two doctors paid the outside health care providers who previously agreed to rates to refer patients for electrodiagnostic testing, home health care services and physical therapy.

The other doctors and a physician's assistant also named by the indictment referred Medicaid and Medicare patients to the companies owned and/or operated by the first doctor for kickbacks. The indictment also contains allegations that the kickbacks were disguised as reimbursements for medical director fees, mileage, contractual labor and continuing medical education.

According a United States Department of Justice public information officer in Grand Rapids, those charged with conspiracy to violate the anti-kickback laws are subject to up to a $250,000 fine, five years in prison and three years of supervised release, along with restitution.

Source: Ludington Daily News, "Nine charged," Susan Field, Jan. 26, 2012