An Indian-origin doctor based in the United States has agreed to pay $14 million (over ₹116 crore) to settle allegations of large-scale healthcare fraud involving unnecessary medical procedures and false billing practices, the US Department of Justice said.
According to a press release issued by the US Department of Justice, urologist Jitesh Patel, along with his practice Advanced Urology Inc. and its affiliated entities, reached a settlement to resolve claims brought under the False Claims Act and the Georgia False Medicaid Claims Act.
What Are The Allegations Against Jitesh Patel?
Federal authorities alleged that Dr Patel and his practice billed government healthcare programmes such as Medicare and Medicaid for procedures that were either not medically necessary or, in some cases, not performed at all.
The investigation was triggered by two whistleblower complaints — one filed by a former employee and another by a former physician associated with the clinic. Both complaints alleged that the organisation operated with a focus on maximising revenue through excessive and unnecessary medical interventions.
According to the allegations, some patients underwent procedures, including device implantations, without adequate evaluation of whether such treatments were medically beneficial. In several cases, patients were reportedly subjected to diagnostic tests that were not clinically required, with some procedures involving anaesthesia.
Authorities also pointed to the large-scale use of ultrasound testing at the clinic. The complaint claimed that nearly every new patient was required to undergo an ultrasound, despite such tests not being standard practice in routine urological assessments. Thousands of these tests were allegedly ordered without medical necessity.
In addition, whistleblowers alleged that the clinic billed for procedures that were never carried out — a serious violation under US healthcare laws.
Whistleblowers To Receive Share Of Settlement
The case was investigated by multiple federal agencies, including the US Attorney’s Office, the FBI, and the Department of Health and Human Services.
US Attorney Theodore S. Hertzberg said authorities would continue to take strict action against healthcare fraud.
“Physicians commit fraud when they seek payment for medically unnecessary procedures or bill for services they never performed,” he said, emphasising that misuse of public healthcare funds and patient exploitation would not be tolerated.
The case falls under the False Claims Act, a law that allows private individuals to file lawsuits on behalf of the government against entities suspected of defrauding federal programmes. Individuals who file such cases — known as whistleblowers or relators — are entitled to a portion of the recovered funds.
In this case, the whistleblowers will receive a combined $2.94 million (approximately ₹24 crore) from the settlement amount.
No Admission Of Liability
Authorities clarified that the settlement resolves allegations made in the case and does not constitute a formal admission of liability by Dr Patel or his practice.
