NY physician gets prison time for taking bribes in $100M fraud scheme

A physician who admitted taking bribes as part of a long-running test referral scheme operated by Parsippany, N.J.-based Biodiagnostic Laboratory Services has been sentenced to 37 months in prison, according to the Department of Justice.

Advertisement

Bret Ostrager, MD, admitted he received monthly cash bribes of about $3,300 from BLS employees between February 2011 and April 2013. In exchange for the bribes, Dr. Ostrager referred patient blood samples to BLS. His referrals generated approximately $909,000 in lab business for the company.

Dr. Ostrager is one of 39 people — 26 of them physicians — who have pleaded guilty in connection with the bribery scheme. Organizers of the scheme have admitted it involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies, according to the DOJ.

In addition to his prison term, Dr. Ostrager was fined $30,000 and ordered to forfeit $101,271.

More articles on healthcare industry lawsuits:

Owner, CFO of Louisiana healthcare company get prsion time for fraud
14 latest healthcare industry lawsuits, settlements

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Legal & Regulatory Issues

Advertisement

Comments are closed.