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Attorney General Ford Announces Medical Group to Pay Over $2 Million to Settle Allegations Involving Improper Billing of Urine Drug Testing

Carson City, NV – Today, Nevada Attorney General Aaron D. Ford announced that, on Jan. 21, Nevada joined with the federal government to settle allegations of fraud against the Nevada corporation Lipshutz & Wills Medical Group, LLP d/b/a Monos Health (“Monos Health”) in relation to its involvement in the billing of urine drug testing to Medicaid, Medicare and Tricare. The approximately $2 million settlement, which resolves allegations from Jan. 1, 2016, through Oct. 11, 2019, involves claims of improper billing of Urine Drug Testing (“UDT”).  

“Monos Health improperly and knowingly defrauded Medicaid, Medicare and Tricare for over 3 1/2 years,” said AG Ford. “This settlement will help redress the harms that this company has caused. I’d like to thank the United States Attorney’s Office for helping us with this important investigation.”

The federal government alleges that during the referenced time period, Monos Health performed definitive UDT on the same day as presumptive UDT without first reviewing the results of the presumptive test and assessing the individualized need for a definitive test. Additionally, Monos Health unnecessarily performed testing at higher rates when testing at a lower rate using a different billing code would have been sufficient. Finally, Monos Health used standing orders for definitive UDT in violation of Medicaid and Medicare guidelines. The federal government alleges that Monos Health’s conduct resulted in the submission of false reimbursement claims to government health care programs, including the Nevada Medicaid Program and Medicare, thereby violating federal law and the Nevada False Claims Statute.

This settlement stems from a whistleblower lawsuit originally filed in the United States District Court for the District of Nevada (United States ex rel. Stacie Oliver, M.D. v. Jeremy Lipshutz, et al., No. 2:19-cv-1839). The case was a joint investigation between the United States Attorney’s Office, District of Nevada, as well as the Nevada Attorney General’s Office, Medicaid Fraud Control Unit.

Senior Deputy Attorney General Amy Steelman worked with the United States Attorney’s Office, District of Nevada in attaining the settlement’s result for the state.

The Nevada MFCU receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award. The remaining 25% is funded by the State of Nevada.

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