Houston neurologist pays nearly $1M in false billing allegation settlement

(Photo by Beata Zawrzel/NurPhoto via Getty Images)

A 52-year-old Pearland man has agreed to pay $948,359.85 in a settlement after allegations of submitting false claims for the surgical implantation of neurostimulator electrodes.

Dr. Basem Hamid is a neurologist and pain medicine doctor who practices in Houston. 

According to documents from the United States Department of Justice (DOJ), Hamid billed Medicare for the surgical implantation of neurostimulator electrodes from Aug. 27, 2019, to Oct. 3, 2022. It is an invasive procedure usually requiring the use of an operating room. Because of that, Medicare pays thousands of dollars per procedure.

However, U.S. Attorney Alamdar S. Hamdani says allegations were made that neither Hamid nor his staff performed these surgical procedures.

Instead, patients allegedly received devices used for electro-acupuncture, which only involved inserting monofilament wire a few millimeters into patients’ ears and taping the neurostimulator behind the ear with an adhesive. All device placements took place in Hamid’s clinic, not a hospital or surgical center, and no incision was made on a patient, according to the allegations. Many patients claimed the adhesive came loose and the device fell off on its own accord within a few days.

"Individuals suffering from chronic pain put their faith in skilled medical professionals to help them find relief and improve their quality of life," said Hamdani. "Our federal health care system entrusts providers with the medical care of our country’s most vulnerable, and it is important for healthcare providers to give accurate information about the services they provide for reimbursement – not misrepresent those services in an attempt to increase their bottom line."

"When health care professionals submit false claims to federal health care programs like Medicare, they erode public trust and divert taxpayer-funded resources away from those who truly need them," said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). "Dr. Hamid not only exploited Medicare for personal financial gain but also misled some of our most vulnerable citizens, according to the allegations. DHHS-OIG and our law enforcement partners remain steadfast in our commitment to protecting the integrity of federal health care programs."

The U.S. Attorney’s Office conducted the investigation with DHHS-OIG. Assistant U.S. Attorney Laura E. Collins handled the matter.

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