Lab Executives Agree to Seven-Figure Payout Over Alleged Physician Bribery Scheme

Two former leaders of a Massachusetts diagnostics firm will pay a combined $1.2 million to settle government claims that they arranged unlawful payments to doctors in return for sending patient samples to their laboratory.

Lab Executives Agree to Seven-Figure Payout Over Alleged Physician Bribery Scheme

Two former leaders of a Massachusetts diagnostics firm will pay a combined $1.2 million to settle government claims that they arranged unlawful payments to doctors in return for sending patient samples to their laboratory.

Susan Hertzberg, who previously headed Boston Heart Diagnostics Corporation, and Matthew Theiler, once the company's sales chief, each agreed to pay $600,000, according to the U.S. Department of Justice. The agreement resolves civil litigation filed under the False Claims Act.

Prosecutors contend that between 2015 and 2017, the pair facilitated a system in which promoters gave money to physicians under the cover of managed service organization profit shares. These funds were allegedly meant to persuade doctors to direct bloodwork and other analyses to Texas medical centers that used Boston Heart's facilities, including procedures that may not have been clinically warranted.

Legal filings suggest both individuals knew that outside promoters were using MSO structures to enlist physicians. Despite receiving advice to halt hospital-related arrangements, particularly in Texas, Hertzberg allegedly authorized and Theiler allegedly carried out an expansion to another medical center in the state while maintaining relationships with many of the same promoters.

Separately, a Houston-area doctor and six marketing professionals will pay an additional $859,055 to resolve related bribery accusations. Federal officials noted that since 2019, they have collected over $61 million in civil settlements involving concealed kickbacks channeled through MSO vehicles.

Source: DOJ Justice News