| Dr. Paul Michelson is an eye surgeon who filed a False Claims Act
lawsuit against his former employer, ScrippsClinic and Research Foundation, and a former
colleague for billing Medicare for unnecessary surgery and operations that were never
performed. The clinic paid $355,000 in April 1988 to settle the qui tam case. A doctor at
the clinic paid $250,000 in August 1990 to settle his portion of the lawsuit. Here is an
edited version of Michelsons story as told to a congressional subcommittee in 1990. In
1977 I left a practice and affiliation with Harvard Medical School to move to
southern California, where I took a position with a prestigious multi-specialty medical
group.
In the mid-1980s, I discovered that a colleague was doing unnecessary surgery and
billing fraudulently. This ophthalmologist was performing infrequent procedures with
dramatic frequency. I felt compelled to investigate and reviewed some of his medical
records.
I learned that he performed laser procedures to treat patients with secondary cataracts
and glaucoma but billed Medicare for more expensive invasive surgical operations. Most
troubling to me as a physician, however, was the discovery that this doctor had subjected
his trusting, mostly elderly patients to dangerous treatments for glaucoma without having
first attempted to treat them with simple safe eye drops and, in other instances, without
having established a definite diagnosis.
Because of the risks involved, lasers are used to treat the common type of glaucoma
only after maximum tolerated medical therapy has failed. Notwithstanding this standard of
practice known to all, my sampling of records proved that this colleague had repeatedly
violated these guidelines. In many instances, he had treated unsuspecting patients who did
not even have glaucoma. In each case, the patients and Medicare were billed over $1,000.
My efforts to correct the situation internally failed. I was forced to consider
alternatives. I knew, however, of well-publicized instances in which doctors and medical
organizations had attempted to curtail unethical or illegal actions by errant colleagues,
only to find themselves the objects of truly punitive legal retributions by the accused
party. I was certain that I, too, would expose myself to a potentially ruinous defamation
or restraint of trade case in the event the authorities failed to act conclusively and
expeditiously.
Had I reported the doctor to authorities, I could then only hope that an investigator
had the opportunity and the inclination to pursue my allegations, and that he or she would
possess sufficient understanding of my specialty to appreciate the magnitude of the
violations. To my knowledge, such investigations rarely, if ever, succeeded.
Fortunately, while searching for a solution, I read a newspaper article about the 1986
amendments to the federal False Claims Act. I learned that this law would guarantee me the
right to my own legal counsel, would permit me to participate fully in the development of
the evidence and the litigation, would require that the authorities promptly investigate
any allegations and would provide court supervision of the progress.
Because the False Claims Act allowed me, with my attorney, to participate in the
process, I did have enough confidence to proceed.
The case was filed against the doctor and his employer in April 1987. I spent hundreds
of hours assisting government investigators and prosecutors interpreting innumerable
medical records. In September 1987 the government joined the case. My attorneys, working
hand-in-hand with the government, obtained a settlement from the employer in April 1988. I
donated my share to charity.
The False Claims Act worked well to resolve this particular instance of unethical
conduct and Medicare fraud. In return for an investment of my time and expertise, the qui
tam provisions allowed me to stop abusive and dangerous medical practices and allowed the
taxpayers to recover substantial funds.
My colleagues have been uniformly enthusiastic in their support of my actions. The
overwhelming majority of physicians believe as I do. We bear the major responsibility for
safeguarding the integrity of the medical profession. Only we, as peers, can properly and
effectively monitor each other. The amended False Claims Act has given us a potent
instrument with which to do so. |