Two Austin Physicians Agree to Settle Allegations of Billing for Excessive and Medically Unnecessary Urine Drug Testing for $3.9 Million

The two co-owners of the now-closed Austin Pain Associates, Robert Wills (now Westlake Aesthetics and Wellness) and Brannon Frank (currently listed with Direct Orthopedic Care, and Austin Midtown Ambulatory Surgical Center  in Austin), have settled allegations they violated the False Claims Act by knowingly billing Medicare, Medicaid and TRICARE for excessive and medically unnecessary urine drug testing.

The Government alleged the two, using an in-house laboratory, drafted testing protocols that resulted in unnecessary tests, were aware that the laboratory was conducting an excessive number of tests on urine samples, and that Austin Pain Associates could not remain profitable without the income generated from unnecessary testing.

Frank will pay $1,800,000 and Wills, $2,100,000. As Medicaid is funded jointly by the states and the federal government, the State of Texas will receive a total of approximately $260,000 from the settlements. But, note this prosecution was limited only to false claims in federal programs, and did not involve any Texas workers’ compensation claims.

This civil settlement includes the resolution of claims brought under the qui tam (“whistleblower”) provisions of the federal False Claims Act by two former employees of Austin Pain Associates. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the settlements, the two whistleblowers will receive a total of approximately $618,000 from the federal share of the settlements.

The claims resolved by the settlements are allegations only.  There has been no determination of liability.  But, this case mimics a pattern we have observed of some individual physicians and chiropractors purchasing used drug testing equipment from commercial laboratories, and under the circumstances, running excessive number of panels and at an unsupported frequency. Ethically, drug testing must be performed for the patient, not to the patient. In-house drug testing has become a substantial income stream for some providers…and one ripe for abuse.