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Tennessee State Senator Steve Dickerson among those sued for Medicare, TennCare fraud

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Posted at 12:57 PM, Jul 22, 2019
and last updated 2019-07-22 14:08:53-04

NASHVILLE, Tenn. (WTVF) — The US Department of Justice and Tennessee have filed a lawsuit against Comprehensive Pain Specialists (CPS) alleging more than $25 million in Medicare, TennCare fraud.

The complaint also names Tennessee State Senator Dr. Steven Dickerson (R-Nashville) as a defendant as a principal owner of CPS. Other defendants include owners Dr. Peter Kroll of Goodlettsville, and Dr. Gilbero Carrero of Nashville, as well as former CEO John Davis of Franklin and chiropractor Russell Smith of Cleveland, Tennessee.

CPS shut it doors last year.

According to the a release by the DOJ, beginning in 2011, CPS "instituted policies to maximize profits through medically unnecessary and excessive testing, including a standing order to automatically conduct quantitative drug testing, specimen validity testing, genetic blood testing and psychological testing on virtually all patients, without regard to individual patient risks or need."

In July of 2012, CPS began operating it's own testing facility in Franklin, and required providers to send back all urine and blood work to its lab for testing. Their reimbursement rate is nearly five times the rate of on-site testing, according to the complaint.

"in addition, John Davis was aware that CPS had submitted false claims and received over $130,000 for non-reimbursable acupuncture, including for services rendered by the physician owner defendants," the release reads. "Yet, Davis made the decision not to refund the overpayment to Medicare."

The complaint says that all three of the principal owners, including Sen. Dickerson, knew of the unlawful practices and personally engaged in the submission of false claims. The DOJ says these false claims continued into 2018.

Several lawsuits have been filed by former employees against the company.

Davis was convicted by a jury back in April of violating the Anti-Kickback Statue.