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Florida Pain Clinic To Pay $7.4M For Medicare Fraud

A company that runs pain clinics in northeast Florida will pay the federal government $7.4 million after an investigation found that it was fraudulently billing Medicare for unneeded patient drug tests.

The U.S. Attorney's Office for the Middle District of Florida said in a news release Wednesday that Physicians Group Services, P.A. runs the clinics under the name Coastal Spine and Pain.

Prosecutors say the company performed initial drug screenings meant to detect illicit drugs in urine, but ordered expensive and unnecessary follow-up tests in 100 percent of its cases and billed Medicare.

U.S. Attorney Lee Bentley says medical tests should only be conducted when medically necessary.

The problem was discovered by a review of claims data that discovered the fraudulent tests and billing in all of the company's cases.