Maryland Oncology Practice Agrees to Pay $1.45 Million to Resolve False Claims Act Allegations

A Maryland oncology practice and its owner have agreed to pay more than $1.4 million to resolve allegations that they violated the False Claims Act by submitting fraudulent claims to Medicare, Medicaid, and the Department of Veterans Affairs. Progressive Oncology & Hematology, LLC, a practice in Frederick, Maryland, and its sole provider, Dr. Mouhamad Bazzi, agreed to pay $1.45 million to settle the government’s claims.

According to the government, Progressive and Dr. Bazzi knowingly sought reimbursement for chemotherapy drugs that were never paid for by the practice. Specifically, the drugs at issue came from charitable organizations or grant programs at no cost to the defendants, yet they allegedly billed federal programs as if they had purchased the medications.

Additionally, the government alleged that the practice split the remaining contents of single-use vials—small amounts of extra medication intended for one patient—across two or more patients, then submitted claims as though each patient received their own full vial. Further, Dr. Bazzi allegedly prescribed chemotherapy drugs that were never actually administered to patients, but the practice billed for them anyway.

U.S. Attorney Kelly O. Hayes stated that seeking reimbursement for drugs that were not paid for or not administered is “simply intolerable.” The case was investigated by the HHS Office of Inspector General and the VA Office of Inspector General. This case reflects the government’s sustained commitment to holding healthcare providers accountable when they attempt to profit at the expense of taxpayer-funded programs like Medicare and Medicaid.