Austin Emergency Center to pay over $429,000 following federal overbilling investigation
Austin, Texas – Austin Emergency Center, along with affiliated entities including Austin ER, AEC ER 4, Pahala Ventures, AEC Physicians, and AEC Pflugerville, has agreed to pay $429,231 to settle claims of violating the False Claims Act. The agreement addresses concerns that the group improperly charged the Federal Employees Health Benefit Program (FEHBP) for COVID-19 related services at rates higher than those billed to cash-paying patients.
According to the U.S. Department of Justice, between June 18, 2020, and April 2, 2021, Austin Emergency Center allegedly submitted inflated reimbursement claims for COVID-19 testing, charging the FEHBP more than individuals who paid out-of-pocket for the same services. In addition, from April 13, 2020, through April 2, 2021, the group is accused of up-coding drive-through COVID-19 evaluations—billing for more complex and expensive services than were actually provided.
Federal Officials Condemn Profit-Driven Exploitation During Pandemic
“Financially capitalizing on crisis and the fear and misfortune of others is at the heart of every unlawful act committed by the worst elements of our society. Doing so under the guise of being a healthcare provider, represents the worst of who we are and further erodes our collective trust in the healthcare system,” stated U.S. Attorney Justin R. Simmons for the Western District of Texas. He emphasized that the Department of Justice will continue pursuing entities that misused pandemic-era programs for personal gain.
The Office of Personnel Management’s Office of Inspector General (OPM OIG) led the investigation that brought the misconduct to light. “During a public health emergency, providers exploited federal employees’ health benefits for profit at the taxpayers’ expense,” said Special Agent in Charge Derek M. Holt of the OPM OIG. “We applaud our investigative staff and our partners at the Department of Justice for continuing to hold these providers accountable.”
Assistant U.S. Attorney Thomas Parnham negotiated the financial settlement on behalf of the federal government, concluding a probe that reflects the government’s commitment to recovering misused pandemic-related healthcare funds.
The resolution sends a clear warning to healthcare providers who may have prioritized profit over ethical care during a national crisis. The federal government remains active in investigating and reclaiming fraudulently obtained funds to ensure accountability and restore public trust.
