Detroit area physician admits providing medically unnecessary chemotherapy as part of $225M fraud scheme

Farid Fata, MD, a Detroit-area hematologist-oncologist, has pleaded guilty to participating in a healthcare fraud scheme and admitted to administering unnecessary chemotherapy to patients to enable him to fraudulently bill Medicare and private insurance companies for the treatment, according to the FBI.

Dr. Fata owned and operated Michigan Hematology Oncology, a cancer treatment clinic, which had locations in seven Michigan cities: Rochester Hills, Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy, and Oak Park. He also owned United Diagnostics in Rochester Hills.

In his guilty plea, Dr. Fata admitted he prescribed and administered aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to patients who did not need them to increase the amount he could bill Medicare and private insurance companies.

Dr. Fata also admitted to soliciting kickbacks from home healthcare companies in exchange for his referral of patients to those facilities.

Dr. Fata pleaded guilty to 13 counts of healthcare fraud, one count of conspiracy to pay or receive kickbacks and two counts of money laundering. Through the scheme, Dr. Fata submitted approximately $225 million in claims to Medicare from August 2007 to July 2013. 

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