The former medical director at the New Jersey Veterans Memorial Home in Paramus agreed to pay nearly $700,000 to resolve allegations his medical practice in Ramsey over-billed patients, U.S. Attorney Philip R. Sellinger Announced Thursday night.
Arun Sehgal and his medical practice, Preventive & Diagnostic Medical Center P.A., agreed to pay $693,490 plus interest to settle allegations he violated the False Claims Act by so-called “up-coding,” billing for more services than could be provided in one day and for billing for services Sehgal allegedly never provided, authorities said.
Authorities said the settlement resolves three sets of allegations from Jan.1, 2017 to June 1, 2022. The settlement does not determine liability and Sehgal denies the allegations, according to the agreement.
Prosecutors alleged Sehgal regularly upcoded certain Current Procedural Terminology, codes typically used for reporting longer duration, or more complex services that require longer visits with patients and are ultimately more expensive.
Sehgal allegedly submitted claims to Medicare for services prosecutors say he did not provide to patients either, regularly billing for “impossible days” in which the physician could not have reasonably provided such a high volume of services or procedures in a single day.
Authorities said on one particular day in March 2018, Sehgal and his practice billed over 43 hours of services. Authorities also said that Sehgal allegedly claimed to provide services to Medicaid patients while he was not physically in the United States.
An attorney for Sehgal did not immediately respond to a request for comment Thursday night.
The New Jersey Veterans Memorial Home in Paramus that Sehgal formerly worked for was investigated by the U.S. Justice Department in October 2020 for its handling of the COVID-19 pandemic and eventually cited in a report as one of two state-run veterans homes that “systematically violated the rights of residents.”
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Matthew Enuco may be reached at [email protected]. Follow Matt on X
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