A Salisbury medical practice and the estate of its former owner paid out close to $300,000 to settle allegations of billing for medical services that were never provided.
Candy Burns, former owner of Peninsula Internal Medicine, was indicted in June 2019 on one count of health care fraud and nine counts of wire fraud, according to a Friday news release from the Maryland U.S. Attorney's Office.
The 10-page indictment alleged Burns defrauded Medicare and Medicaid from at least 2009 through June 2016. The "scheme" included submitting claims on behalf of Peninsula Internal Medicine for services provided by another company, as well as submitting claims with services added that were not medically necessary or provided to the patient.
Burns suffered a brain aneurysm in December 2019 and the indictment against her was dismissed in April 2020. Burns died in January 2021.
The settlement agreement announced Friday morning resolves a 2015 federal lawsuit filed by former Peninsula Internal Medicine employee Kimberly Elliott under the whistleblower provision of the False Claims Act.
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The lawsuit stated the defendants, which included Burns and Peninsula Internal Medicine, "were and are submitting false and fraudulent billing statements" and that much of Burns' $600,000 salary "was obtained through the false representations."
Elliot was Peninsula Internal Medicine's office manager from 2007 until she was...
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