Daycare pays up $3m for medicaid fraud
Daycare pays up $3m for medicaid fraud


EDISON, NJ -- The US Attorney’s Office in the District of New Jersey on September 27 announced that Edison, NJ-based Edison Adult Medical Daycare, its former owner Dinesh Patel and current owners Daxa Patel and Satish Mehtani have agreed to pay the US and the state of New Jersey nearly $3 million to settle a case that claimed the daycare violated the False Claims Act.

Acting US Attorney William Fitzpatrick made the announcement of the settlement agreement stemming from allegations that the daycare improperly billed and received payments from Medicaid despite Dinesh Patel having been excluded from participating in Medicaid following his 2012 conviction for accepting kickbacks.

In total, the three Indian American accused agreed to pay $2.72 million.

The settlement resolves federal and state government allegations that from March 17, 2012, through August 4, 2015, Dinesh Patel violated his exclusion by not ceasing his involvement in the adult daycare facility, and that the daycare violated the False Claims Act by submitting claims to and receiving payments from Medicaid while Dinesh Patel directed, managed and supervised activities at Edison.

The settlement also resolves allegations that owners Daxa Patel and Satish Mehtani had full knowledge that Dinesh Patel was managing the daycare while he was an excluded Medicaid provider.

In addition to the settlement payment, Dinesh Patel has also agreed to another five-year exclusion precluding him from participating in all federal health care programs, including Medicaid and Medicare, until 2022.

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Update: 08-October-2017



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