Obama administration credits health reform law for record-setting $375M fraud bust

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"Thanks to our new fraud detection tools, we have greater abilities to identify the kind of sophisticated fraud scheme that previously could have escaped scrutiny," said Health and Human Services Deputy Secretary Bill Corr. "Our aggressive Medicare Fraud Strike Force operations have enabled us to break up a significant alleged fraud operation and the fraud-fighting authorities in the Affordable Care Act have allowed us to stop further payments to providers connected to this scheme. This case and our new detection tools are examples of our growing ability to stop Medicare fraud."

The announcement comes as Attorney General Eric Holder testified Tuesday before House appropriators that the Department of Justice had recovered $4.1 billion in fraudulent or improper federal health spending in 2011.

The Texas doctor is accused of recruiting thousands of patients over several years and billing Medicare for unnecessary services through his association of healthcare providers, Medistat Group Associates. According to the indictment, the doctor allegedly helped certify more than 11,000 individual patients from more than 500 home health agencies — more than any other medical practice in the country — for home health services during the past five years.