U.S. Attorney’s Office Secures Settlement in Sanexas Billing Investigation

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PHILADELPHIA, PA — The U.S. Attorney’s Office has achieved a significant settlement with Healing Place Medical, P.C., a chiropractic clinic implicated in improper billing practices involving the use of Sanexas devices. Announced by U.S. Attorney Jacqueline C. Romero, the $170,000 settlement is part of a broader national investigation into fraudulent claims submitted to Medicare for unapproved treatments.

Healing Place, owned by Gregory Thomas White Jr, DC, primarily used Sanexas treatments for patients with pain and edema. The Sanexas device, approved as similar to a TENS unit, was employed alongside non-FDA-cleared vitamin injections, leading to over 27,000 claims being improperly billed to Medicare. These treatments did not meet the criteria outlined in Medicare’s National and Local Coverage Determinations, which exclude certain electrostimulation and vitamin injections from coverage.

The investigation revealed that Healing Place also conducted ENFD and TM Flow testing, neither of which were deemed medically necessary or reasonable in the context of Sanexas treatments. The procedures were purportedly used to justify further Sanexas treatments, despite lacking medical substantiation or FDA clearance for nerve healing.

“Our office continues to lead the national charge to hold alleged fraudsters accountable for improper Sanexas billing,” stated U.S. Attorney Romero. She emphasized the ongoing collaboration with CMS’s Center for Program Integrity and the Office of the Inspector General (HHS-OIG) to address fraudulent billing practices in healthcare.

Maureen R. Dixon, Special Agent in Charge for HHS-OIG, reiterated the necessity for accurate billing practices, stating, “Accurately billing for services provided to Medicare enrollees is required of all health care providers participating in the program.”

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The settlement highlights the critical importance for healthcare providers to adhere strictly to Medicare billing guidelines, ensuring that all claims are justified by medical necessity and compliance with applicable regulations. This agreement serves as a cautionary tale for providers nationwide, reinforcing the imperative of upholding integrity in billing practices to maintain trust in the healthcare system.

The investigation, spearheaded by the HHS-OIG, involved meticulous review by Special Assistant U.S. Attorney Eric S. Wolfish and Civil Division Chief Gregory B. David, supported by auditors Dawn Wiggins and Andrew Schobert. The settled claims are allegations only, with no admission of liability by Healing Place.

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