A cardiologist who formerly treated patients at National Park Medical Center has agreed to settle allegations of falsely submitting claims to the Medicare Program for placing cardiac stents in patients where it was medically unnecessary, the U.S. attorney for the Middle District of Tennessee said Thursday in a news release.
Dr. Jeffrey G. Tauth, 60, agreed to pay $900,000 as part of the settlement and "will enter into an Integrity Agreement with the U.S. Department of Health & Human Services," the release said.
In the release, U.S. Attorney Henry C. Leventis said one of the top priorities of his office is health care fraud.
"We will aggressively pursue all those who are involved in fraud against government programs," he said. "Whether it be a corporate entity or an individual provider, those who seek to exploit patients and federal health care programs for financial gain can expect to be the focus of our civil and criminal enforcement efforts.
"As Lifepoint has done here, we encourage those who may become aware of false claims to be proactive in ceasing and disclosing the conduct, particularly when there are allegations of unnecessary medical procedures."
According to the release, Tauth allegedly was involved in the submission of claims for cardiac stents he inserted into Medicare patients that were not medically necessary from September 2013 through August 2019.
Tauth, in a statement released Thursday by his attorney, John Kyte, maintained the allegations made by NPMC are false.
"I am pleased to have reached a settlement agreement with the Department of Justice regarding allegations brought to them by my former employer, National Park Medical Center," he said. "The settlement agreement specifically states that it is not 'an admission of liability' by me, and I remain steadfast in my position that the allegations made by my former employer are false and without merit."
Thursday's news release said that "The claims resolved by the settlement are allegations only and there has been no determination of liability."
"I have chosen to enter into the settlement agreement because the legal process initiated by National Park's allegations has been emotionally and financially damaging to me and my family in the extreme, and a settlement puts an end to the delays, uncertainties, inconveniences and expenses of protracted litigation. Settlement is in the best interests of my family, my patients and my medical practice," Tauth said.
"I am extremely grateful for the support I have received from my patients, medical staff, colleagues, friends and family during this difficult time, and I look forward to providing high-quality cardiac care in the greater Hot Springs community for many years to come."
Lifepoint Health, the Brentwood, Tennessee-based company that acquired NPMC and Hot Springs Cardiology Associates in November 2018, gave a voluntary disclosure of the alleged false claims in November 2019.
The hospital and Hot Springs Cardiology entered into a settlement in October 2020 for the alleged violations and agreed to pay $14,669,586, which includes over $9 million in restitution, according to the news release.
"National Park Medical Center (NPMC) is committed to maintaining high standards of integrity, legal compliance, and quality care for our patients," Scott Smith, CEO of National Park Medical Center, said in a statement released Thursday.
"We regularly monitor our processes, procedures and reporting and actively self-report concerns to regulators to ensure we are upholding these standards across our organization," he said.
"A few years ago, our hospital identified some issues with patient cases related to a former physician Dr. Jeffrey Tauth, who no longer practices at NPMC.
"When the issue was first identified, NPMC did the right thing by making a voluntary self-disclosure to the federal government, and we reached a settlement with the government in 2020. We are proud that our hospital took the appropriate steps to promptly self-report and finalize a settlement with the government for a swift resolution more than two years ago," Smith said.
"The federal government has finally reached a settlement with Dr. Tauth separately. This announcement is the final step in resolving any outstanding actions related to this matter, and in no way impacts our commitment to providing the best possible care to our patients and community."
The U.S. attorney's office did not provide a news release when it reached the settlement with NPMC and Hot Springs Cardiology as it was waiting for the settlement with Tauth, as well, David W. Boling, public information officer with the U.S. attorney's office for the Middle District of Tennessee, said Thursday.
The case was investigated by the U.S. Department of Health & Human Services -- Office of Inspector General, and Assistant U.S. Attorney Kara F. Sweet represented the United States.
"Submitting claims for medically unnecessary procedures undermines the integrity of federal health care programs and wastes valuable taxpayer dollars," Tamala E. Miles, special agent in charge with the Office of the Inspector General, said in the news release.
"HHS-OIG will continue to work tirelessly alongside our law enforcement partners to protect the integrity of federal health care programs and to ensure the appropriate use of U.S. taxpayer dollars."
The release said the settlement does not assign liability to Tauth, NPMC or Hot Springs Cardiology. It also does not limit litigation on current or future lawsuits against Tauth, NPMC or Hot Springs Cardiology, Boling said.
"This resolves the government's claims against Dr. Tauth and NPMC but has no bearing on any litigation that may be filed by current or former patients," he said.