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Whistleblower Receives $545,000 After Enforcement Action Against Bay Sleep Clinic

A sleep technician in California will receive a $545,000 award for serving as a whistleblower in a case involving the Bay Sleep Clinic and several of its affiliates.

Bay Sleep Clinic recently settled the case with the U.S. Department of Justice for $2.6 million. The action stemmed from allegations that the company and its affiliates violated the False Claims Act by inaccurately billing Medicare for medical devices and diagnostic services.

Employee speaks up to report fraud

The whistleblower, Elma F. Dresser, worked as a marketer and sleep technician for Bay Sleep Clinic for about eight years. She filed her initial whistleblower claim in April 2012 after she became aware of the company’s Medicare overbilling practices. In her qui tam complaint, Dresser claimed that the clinic hired unqualified and uncertified staff members to conduct sleep studies and offered products and testing at unapproved locations. She also said she had evidence of self-dealing and the paying of kickbacks for referrals.

Dresser also claimed that Bay Sleep Clinic’s Medicare billing agent, Access Medical Consultants, knew of the violations and continued to allow the clinic to submit false claims to Medicare.

In addition to the $2.6 million settlement, reached in May 2015, Bay Sleep Clinic and the affiliates involved may not enroll as Medicare-approved providers for at least three years.

This case is yet another example of the awards whistleblowers can secure if they provide the federal government with information that leads to a successful enforcement action. For the advice you need if you are considering a qui tam claim, speak with a knowledgeable Dallas attorney at Whistleblower Law for Managers.


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