California physician, practice paying $2M to settle fraud allegations

A Stockton, Calif., physician and his medical practice have agreed to pay nearly $2 million to resolve Medicare billing fraud and kickback allegations. 

The U.S. Justice Department said Aug. 12  that Azizulah “Aziz” Kamali, MD, and his practice, Aziz Kamali, MD Inc., admitted to submitting claims to Medicare for surgically implanted neurostimulator devices even though they did not perform surgery or implant neurostimulators. Instead, they taped a disposable electroacupuncture device called a “Stivax” to their patients’ ears. 

Stivax devices do not require surgical implantation and are not reimbursable by Medicare, according to a Justice Department news release. 

Dr. Kamali and his practice also admitted to paying a marketing company a percentage of the reimbursements they received from Medicare for  billing implantable neurostimulators, in return for the marketing company arranging for and recommending that patients order the Stivax devices from them, according to the news release.

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