Eight people, including at least four people with ties to mid-Michigan, have been indicted in what the U.S. Attorney's Office calls a "kickback scheme." Another mid-Michigan doctor faces similar state charges.
According to the indictment, Babubhai Rathod, also known as "Dr. Bob", paid medical professionals to anywhere between $100 and $1,000 to refer patients to several of his companies. Rathod, who lives in Okemos, is not actually a doctor.
But court documents say Rathod owns and runs medical clinics, outpatient rehab faicilities, and home health care companies - including Lakeshore Spine & Pain, which has clinics in Ludington and Edmore, and U.S. Rehab Services, which has several offices including in one Mt. Pleasant.
Those documents say Rathod and two men who help run those companies paid four doctors and a physician's assistant for the referrals. The companies would then perform electrodiagnostic testing, physical therapy, or home health care services and then bill Medicare and Medicaid for them.
It's against the law to refer Medicare or Medicaid patients to other doctors in exchange for money, says U.S. Attorney Don Davis.
"Congress intended that medical decisions be made with the patient's best interest in mind and not because the referral of a patient will result in a financial benefit to the referring physician," he said.
Along with Rathod, three mid-Michigan doctors face federal charges.
According to the indictment:
* Dr. Niti Thakur, who works at Lansing Rheumatology, accepted a total of $600 to refer two patients to U.S. Rehab in February and June of 2011.
* Dr. Muhammad Salman Rais, who works out of an office in DeWitt, accepted $300 to refer a patient to U.S. Rehab in April of 2011.
* Dr. Andre Blair Smith, who works at Optimum Health Clinic in Lansing, accepted $100 to refer a patient to Lakeshore Spine & Pain in June of 2011.
Six News caught up with Dr. Niti Thakur Tuesday evening and asked her about the indictment. Thakur said she had no comment and that the incidents didn't involve her.
All eight people facing federal charges appeared in a federal courtroom in Grand Rapids for an initial appearance and were released.
The kickback charge carries a penalty of up to 5 years in prison and $250,000 fine. The eight will appear in a federal courtroom again for their arraignment on Tuesday.
According to a press release, a Dr. Kevin Witt from Jackson was arrested on similar state charges and appeared in an East Lansing courtroom Tuesday. If convicted, Witt's charge is a four year felony.
