United States v. Kamal Patel

778 F.3d 607, 2015 U.S. App. LEXIS 2099, 2015 WL 527549
CourtCourt of Appeals for the Seventh Circuit
DecidedFebruary 10, 2015
Docket14-2607
StatusPublished
Cited by53 cases

This text of 778 F.3d 607 (United States v. Kamal Patel) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Kamal Patel, 778 F.3d 607, 2015 U.S. App. LEXIS 2099, 2015 WL 527549 (7th Cir. 2015).

Opinion

FLAUM, Circuit Judge.

Dr. Kamal Patel is a Chicago-area physician who commonly prescribes home health care services for his patients. After federal investigators learned that. Patel *609 had been receiving undisclosed payments from Grand Home Health Care (“Grand”), a home care provider used by some of his patients, Patel was charged with six counts of violating — and one count of conspiring to violate — 42 U.S.C. § 1320a-7b, otherwise known as the Anti-Kickback Statute. In relevant part, the Statute makes it illegal to “knowingly and willfully solicit[ ] or receive[ ] any remuneration (including any kickback, bribe, or rebate) ... in return for referring an individual to a person for the furnishing” of health care services paid for, in whole or in part, by a federal health care program. Id. § 1320a-7b(b)(l)(A).

During his bench trial, at the close of the government’s evidence, Patel moved for a judgment of acquittal, arguing that he had not “referred” any patients to Grand because there was no evidence that he steered or directed his patients to Grand; rather, the patients independently chose Grand as their provider after Patel prescribed home health care. The district court rejected Patel’s argument, holding that, even if a patient had initially chosen Grand, Patel “referred” the patient to Grand when he certified or recertified that the patient needed care, that the care would be provided by Grand, and that Grand could be reimbursed by Medicare for services provided. This certification and recertification occurred each time Patel signed a standardized Medicare form, Form 485, for one of his patients.

On appeal, Patel argues that the district court erred by holding that the certification and recertification, via Form 485, of patients for treatment constitutes a “referral” under the Anti-Kickback Statute. He also argues that even if those certifications were referrals, there was insufficient evidence to conclude that Patel was paid “in return for” certifications, as required by the statute. We affirm.

I. Background

Patel is an internal medicine specialist who treats approximately twenty elderly patients per day and prescribes home health care services to about ten patients per month. One of the approximately 10-20 home health care providers used by Patel’s patients is Grand, a Chicago-based company. Around 95% of Grand’s patients are Medicare beneficiaries; Medicare, the parties have stipulated, is a federal health care program as defined in the Anti-Kickback Statute. In 2002 or 2003, Grand experienced a significant decline in business when some of its partners left to form a competing company, taking most of Grand’s patients with them. Prior to that time, Grand had received patients from Patel, but this ceased following the partners’ departure. To counteract this downturn, Grand’s owners, Nixon Encinares and Maria Buendia, initially tried introducing themselves to numerous doctors in the area, including Patel, in an effort to attract business. After this approach proved unsuccessful, the Grand owners begin offering to pay doctors for referrals of Medicare patients.

Encinares approached Patel, specifically offering to pay him for “referrals.” According to Patel, he did not say anything in response to the proposal and “didn’t agree with” Encinares. Buendia and En-cinares, on the other hand, testified that Patel said something to the extent of “okay” or “yeah” in response to their offer. 1 During a second meeting with Patel, *610 Encinares and Buendia offered to pay Patel for referrals on a per-patient basis. After making this offer, Grand began providing home health care services to about 2-4 of Patel’s patients per month; a majority of Patel’s patients continued to use other providers.

To qualify for Medicare-reimbursed home health care services, a patient must be homebound and suffer from a medical condition or constellation of medical conditions that requires skilled nursing care or therapeutic services. A doctor or nursing facility must initially determine that a patient needs these services. Once this determination is made, the patient or his caregiver must select a provider to furnish the necessary services. Often, a treating physician or nurse will discuss the merits of particular providers with patients. Patients who have previously received home health care services often reselect then-previous provider. After a provider is selected, the patient or his doctor contacts the provider and supplies important information, including the patient’s name, his diagnosis, and his Medicare number. The provider then assesses the patient’s condition and needs, and formulates a treatment plan. To be reimbursed by Medicare for the treatment, the provider must complete and submit to Medicare a Form 485 for each patient; Form 485 is a standardized Medicare ■ form that certifies that home care is medically necessary and outlines a patient’s diagnosis, medications, treatment plans, and goals. After filling out this information, providers must procure the signature of the patient’s primary care physician on each Form 485 before the provider can bill Medicare. A signed re-certification form is necessary for home care that lasts longer than the initial 60-day certification period. Home health care providers can — and often do — treat patients prior to receiving a signed Form 485, but they cannot be reimbursed by Medicare until the Form has been signed. By signing a Form 485, a physician certifies that “the patient is confined to his/her home and needs intermittent skilled nursing care, physical • therapy and/or speech therapy or continues to need occupational therapy,” and that the physician has “authorized the services on this plan of care and will periodically review the plan.”

Both before and after Grand began offering Patel kickbacks, Patel used the following process when prescribing home health care for a patient. First, Patel made the initial determination that the patient required home health care services. This initial decision is not' at issue in this case — it is undisputed that all of Patel’s patients who were treated by Grand needed home health care. After this initial determination was made, a provider needed to be chosen. Patel did not personally discuss the selection of providers with patients or their family members, either as an initial matter or as part of recertification. Rather, his patients discussed home health care options with Patel’s medical assistant, Jeanette Sungvoom. Patel did not tell Sungvoom which provider to recommend. Sungvoom gave patients an array of 10-20 brochures from various providers. The brochures were given to Patel’s office by the providers, but it is unclear whether Sungvoom and Patel included every brochure that they were offered. One of the brochures provided by Sungvoom was Grand’s, but the government does not contend that it was included in the array because Grand had offered Patel kickbacks. Each patient indepen *611 dently chose a provider from those in the array. After a provider was selected, Sungvoom called or faxed the provider with the name of the patient, his diagnosis, and his Medicare number.

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778 F.3d 607, 2015 U.S. App. LEXIS 2099, 2015 WL 527549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-kamal-patel-ca7-2015.