Owners of Gamma Healthcare Settle False Claims Act Allegations

Gamma Healthcare and its owners have reached a settlement agreement with the Justice Department to pay $13.6 million to resolve allegations of False Claims Act violations. As part of the settlement, Gamma Healthcare and the Murphys have agreed to a 15-year exclusion from participating in federal health care programs. This case underscores the consequences that can result from violating the False Claims Act and the commitment to enforcing laws that protect the integrity of government health care programs.

The Justice Department highlighted the importance of upholding the integrity of federal health care programs and holding accountable those who engage in fraudulent practices. The department emphasized that this case serves as a reminder that companies and individuals who are found to have committed health care fraud will face repercussions, including financial penalties and exclusion from federal health care programs.

Gamma Healthcare was accused of submitting claims to Medicare for laboratory tests that were not ordered by health care providers and were deemed medically unnecessary. The company’s owners, Jerry W. Murphy and Jerrod W. Murphy, were also implicated in these false claims. The DOJ’s investigation into Gamma Healthcare began in 2015, leading to this settlement agreement in 2021.

This information was reported by Bloomberg Law Automation and serves as an example of the repercussions faced by companies and individuals who are found to have committed health care fraud. The settlement reached in this case demonstrates a commitment to holding accountable those who defraud government health care programs and showcases the efforts to maintain the integrity of the system.

By Samantha Johnson

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