Tallahassee Sun

Dr. Mustafa A. Hammad, M.D., a neurologist and pain management physician formerly practicing at the NeuroMedical Institute in Panama City, Florida, has agreed to a $550,000 consent judgment and settlement to resolve a lawsuit filed by the United States under the False Claims Act (FCA) and the Controlled Substances Act (CSA). The announcement was made by Jason R. Coody, United States Attorney for the Northern District of Florida.

“This lawsuit and resolution demonstrate our resolve to hold physicians accountable for the blatant fraudulent billing of our federal health care programs,” said U.S. Attorney Coody. “Together with our law enforcement partners, we will continue to defend the fiscal integrity of federal healthcare programs. This agreement results in the return of fraud proceeds to the American taxpayers and through the surrender of his DEA registration ensures the defendant’s fraudulent billing practices have come to an end.”

In March 2023, a lawsuit was filed against Hammad in the United States District Court for the Northern District of Florida alleging numerous violations under FCA and CSA (United States v. Mustafa A. Hammad, M.D., Case No. 5:23-cv-00063-TKW-MJF). The allegations included that Hammad conducted approximately 582 sleep studies while outside the United States and billed Medicare and Medicaid for these services in violation of FCA. Additionally, it was alleged that he issued multiple prescriptions while outside the country in violation of CSA and billed for around 4,787 additional services allegedly performed at NMI during his absence.

To resolve this litigation, Hammad agreed to several conditions including: (1) a consent judgment amounting to $550,000; (2) allowing the United States' sale of his real property in Panama City; (3) not contesting a forfeiture judgment amounting to $506,017.40 (United States v. $42,924.20 et al., Case No. 5:22-cv-00065-TKW-MJF); and (4) agreeing not to reapply for DEA registration.

“Doctors like Hammad who falsify prescriptions and medical records increase prescription misuse and abuse,” said Deanne L. Reuter, Special Agent in Charge at Drug Enforcement Administration Miami Field Division. “This consent judgement demonstrates our resolve to hold those accountable who misuse their DEA Registration.”

Stephen Mahmood from U.S Department of Health and Human Services Office of Inspector General stated: “Physicians who participate in federal health care programs must follow the law when billing federally funded health care programs such as Medicare and Medicaid.” He added that "HHS-OIG is committed to protecting these taxpayer-funded programs."

The civil settlement agreement does not imply any admission of liability by Dr. Hammad nor does it indicate that claims from either side were unfounded.

Assistant United States Attorneys Mary Ann Couch, Marie Moyle, Katherine Kerwin, Kaitlin Weiss, and Andrew Grogan represented this matter along with related forfeiture actions investigated by various agencies including Drug Enforcement Administration's Diversion Control Program.

The U.S Attorney’s Office for Northern District of Florida is among 94 offices serving as principal litigators under direction from Attorney General.

For more information about public court documents or details about U.S Attorney’s Office Northern District visit http://www.justice.gov/usao/fln/index.html