Pearland Neurologist Settles for Nearly $1 Million in Medicare Fraud Case Involving Neurostimulator Implants
Houston, TX – A prominent Pearland neurologist and pain medicine specialist has agreed to a substantial settlement of nearly $1 million to resolve allegations of fraudulent billing practices involving neurostimulator electrode implants. Dr. Basem Hamid, who practices in Houston, was accused by the United States Department of Justice (DOJ) of submitting false claims to Medicare for complex surgical procedures that were never actually performed. The settlement amount, totaling $948,359.85, reflects the gravity of the alleged misconduct, which spanned from August 2019 to October 2022.
The core of the allegations centers on the disparity between the procedures billed to Medicare and the treatment patients actually received. Dr. Hamid reportedly billed Medicare for the surgical implantation of neurostimulator electrodes, a complex and invasive procedure typically performed in an operating room setting, commanding substantial reimbursement from Medicare. However, the government contends that instead of these intricate surgeries, patients received a far less invasive form of electro-acupuncture. This procedure involved the insertion of a thin wire, a monofilament, mere millimeters into the patients’ ears and the subsequent taping of a neurostimulator device behind the ear with an adhesive. Crucially, these procedures were conducted in Dr. Hamid’s clinic, not a hospital or surgical center, and did not involve any incisions, dramatically contrasting with the surgical implantation procedure billed to Medicare.
Further raising concerns, many patients reported that the adhesive used to secure the neurostimulator device was insufficient, leading the device to detach and fall off within days. This alleged discrepancy between the billed procedures and the actual treatment administered not only represents a significant financial misrepresentation to Medicare but also raises serious concerns about the quality of care provided to patients seeking relief from chronic pain. The allegations suggest a pattern of exploiting vulnerable patients seeking pain management, potentially compromising their well-being while simultaneously defrauding the federal healthcare system.
U.S. Attorney Alamdar S. Hamdani underscored the importance of trust in the healthcare system, stating, "Individuals suffering from chronic pain put their faith in skilled medical professionals… 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." Hamdani’s statement highlights the breach of trust inherent in such alleged fraudulent activities, eroding the public’s confidence in medical professionals and the integrity of the healthcare system.
Jason E. Meadows, Special Agent in Charge of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG), echoed these sentiments, emphasizing the far-reaching consequences of such fraud. "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," Meadows stated. He further accused Dr. Hamid of exploiting Medicare for personal gain and misleading vulnerable citizens. The DHHS-OIG, alongside its law enforcement partners, remains committed to safeguarding the integrity of federal healthcare programs and holding accountable those who seek to exploit them for personal profit.
The investigation, conducted jointly by the U.S. Attorney’s Office and the DHHS-OIG, was handled by Assistant U.S. Attorney Laura E. Collins. The settlement, while substantial, does not constitute an admission of guilt by Dr. Hamid. However, it underscores the government’s commitment to pursuing healthcare fraud and protecting the integrity of taxpayer-funded programs like Medicare. This case serves as a stark reminder of the vulnerability of patients seeking pain relief and the importance of holding medical professionals accountable for their billing practices and the quality of care they provide. The settlement brings a degree of closure to the case, but the broader implications for patient trust and the fight against healthcare fraud remain significant.