Florida lab owner admits to using Pennsylvania hospital for Medicare scam, two other fraud cases

A Florida lab owner has agreed to pay more than $97 million in restitution and forfeit more than $31 million and a luxury boat after pleading guilty to charges in three federal cases against him. 

Daniel Hurt, 58, admitted to his involvement in schemes in Pennsylvania, New Jersey and Florida, according to a Sept. 15 Justice Department news release. 

Mr. Hurt admitted to his role in acquiring thousands of cancer genomic testing samples from Medicare beneficiaries across the U.S., causing the samples to be sent to Ellwood City (Pa.) Medical Center and using the hospital as the billing entity for Medicare purposes. Medicare reimbursed the hospital more than $25 million for the testing during the first 10 months of 2019. 

He admitted to a similar but separate scheme in New Jersey between January 2019 and October 2021, according to the release. Labs owned by Mr. Hurt submitted at least $53.3 million in fraudulent cancer genomic testing to Medicaid and received at least $26.9 million in reimbursements.  

He also admitted to his role in a scheme to defraud health insurance plans, including Tricare and the Civilian Health and Medical Program of the Department of Veterans Affairs, according to the release. He admitted that he and others worked with patient recruiters to solicit patients who had health insurance. The recruiters would generate prescriptions containing the patients' information and a limited selection of expensive compounded medications. The formulations of these prescriptions were created or altered to receive maximum reimbursement from insurance companies. The prespections were then referred to a telemedicine company in Utah and were subsequently sent to a pharmacy owned by Mr. Hurt. He admitted to receiving more than $4.2 million from this scheme. 

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