An Appleton clinic and its founder agreed to pay $175,000 to settle allegations that the clinic falsely submitted claims to Medicare for electrical muscle stimulation and vitamin injections, according to the United States Attorney's Office for the Eastern District of Wisconsin.

Apple Medical Clinic, 2000 S. Memorial Drive, and Dr. Michael Johnson were named as defendants in a federal lawsuit accusing the clinic of violating the False Claims Act and Anti-Kickback Statute by knowingly submitting false claims to Medicare for treatments and services that were not medically necessary or covered by Medicare, according to court filings.

The clinic offered outpatient treatment to block pain using an electric stimulation device developed by Nevada-based RST-Sanexas, Inc., as well as vitamin blend injections and other services, the attorney's office said in a news release. Johnson and RST-Sanexas marketed the service as a "last hope" and "life changing" treatment "covered by most insurances and Medicare," according to the lawsuit.

RST-Sanexas, Inc. and its inventor, CEO and Director of Client Training and FDA Compliance were also named in the suit.

A National Coverage Determination by the Centers for Medicare and Medicaid Services states that "electrical nerve stimulation treatments furnished by a physician in his/her office, by a physical therapist, or outpatient clinic are excluded from coverage," the attorney's office said.

Despite the treatments not being medically necessary or...

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