DOJ settles CityMD Covid fraud charges for $12 million

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People wait in line to enter CityMD, a health clinic offering testing for the coronavirus disease (COVID-19), on the Upper West Side as the Omicron coronavirus variant continues to spread in Manhattan, New York City, USA, December 19 2021 .

Andrew Kelly | Reuters

Wal vegetables-backed CityMD will pay $12.04 million to resolve Covid fraud allegations from the Department of Justicethe department announced on Friday.

From February 2020 to April 2022, the urgent care provider allegedly obtained fraudulent government reimbursement for Covid testing by submitting false claims to a Covid program specifically intended for uninsured patients, even if their patients had health insurance.

The U.S. Attorney’s Office for the District of New Jersey brought the allegations to its attention False Claims Acta law that encourages whistleblowers to file lawsuits related to possible fraud by awarding them a share of the government’s profits in successful cases.

Stephen Kitzinger, a CityMD patient, initially alleged the fraud 2020. As a reward for bringing the case to the government’s attention, Kitzinger will receive more than $2 million from the settlement.

CityMD, which operates more than 100 urgent care practices in New York and New Jersey, cooperated with the government’s investigation and hired an outside firm to help the government determine how much was lost in connection with the alleged fraud. according to the DOJ.

“Uninsured Americans at risk for COVID-19 were covered by emergency funding programs that provided them with the tests, vaccines and treatments they needed,” U.S. Attorney Philip R. Sellinger said in a statement Friday. “The alleged misuse of these funds is something we cannot and will not tolerate.”

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Walgreens did not immediately respond to a request for comment sent after regular business hours.

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