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Medicaid Fraud NY Attorney Update on Million Dollar Lawsuit – Blow the Whistle

Thumbnail image for above-the-bar-logo-no12.jpgOur NY Whistleblower Attorneys have been asked to comment on a new lawsuit against Park Avenue Medical Associates and its related entities. The lawsuit seeks over $1,000,000 in damages. The Company allegedly billed Medicare for medically unnecessary services provided to elderly or mentally ill patients. Further, it is alleged that the Company did not document services and otherwise failed to follow Medicare’s rules and regulations. Specifically, the government alleges that the Company “inundated Medicare with bogus claims, including bills for unnecessary psychiatric services for vulnerable elderly patients, who did not have the ability to benefit from the services.” Medicaid fraud costs Americans over one billion dollars every year and reduces our public resources and raises our taxes. Often the fraud can go undetected for a long time, spanning over many years. If you aware of a fraudulent scheme affecting the state or federal government and want to do your part in ending corruption, call our lawyers at (800) 893-9645 to confidentially learn your options and how we can help you blow the whistle.

In general, Medicare does not allow for payment of medical services that are not reasonable and necessary for the diagnosis or treatment of an illness or injury. Second, Medicare also does not allow payment for claims without adequate documentation substantiating the reasonableness and necessity of the services provided. Here, it is alleged that the Company sought payment in contravention of those two rules.

General Tips for Whistleblowers

1. You should not have initiated or participated in the fraud scheme yourself. There are some elements to this that are fact specific.

2. You must be the original source of information meaning you cannot have learned the information from public materials.

3. You should have an experienced attorney assist you in each step of the process to make sure that you have a clear strategic plan and missteps are not made.

Finally, it is important for whistleblowers to act quickly because it is very advantageous, and perhaps vital, to be the first to file a complaint. If you are a current employee of a Company that you believe is engaging in fraud, we can discuss the anti-retaliation provisions of the law and how they apply to your particular case. Call our office now at (800) 893-9645 to confidentially learn your rights.


Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.

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