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Stamford doctor and his practices to pay $866,539 to settle COVID-19 and Medicare billing allegations

Federal and Connecticut authorities said Dr. Steven Murphy billed a federal COVID-19 program for patients who had insurance and charged Medicare and Medicaid for blood tests his lab never ran. He also agreed to a three-year exclusion from federal health programs.

A Stamford physician and his two medical practices have agreed to pay $866,539 to resolve federal and state allegations that they billed a COVID-19 relief program for patients who had health insurance and charged Medicare and Medicaid for blood tests that were never performed, the U.S. Attorney's Office in Connecticut said.

Under the civil settlement, Dr. Steven Murphy and his practices, Murphy Medical Associates LLC and Diagnostic and Medical Specialists of Greenwich LLC, also agreed to be barred from all federal health care programs for three years. The agreement resolves False Claims Act allegations brought by the federal government and the state, covering September 2019 through April 2022. The release did not say whether Murphy admitted wrongdoing.

During the pandemic, Congress funded a program, overseen by the federal Health Resources and Services Administration, that paid providers for COVID-19 testing, treatment and vaccinations given to uninsured patients. Providers had to attest that they had confirmed each patient had no government or private coverage.

Prosecutors allege that Murphy's practices made those attestations and were paid for patients whose files held copies of insurance cards and other documents showing they were insured. The practices also changed those patients' insurance information in their electronic medical records to "Covid19 HRSA Uninsured" before billing the program, the government said.

The government also alleges that Murphy's in-house lab, which billed Medicare and Medicaid separately for each test in a standard blood panel, charged for tests it could not run because it had not bought, or did not have, the chemical reagents needed to perform them.

The Connecticut attorney general's office took part in the settlement.

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Connecticut