North Carolina Rheumatologist Settles False Claims Act Allegations Over Unapproved Drugs

A North Carolina physician, Dr. Steven L. Mendelsohn, has agreed to pay $549,554.26 to resolve allegations under the False Claims Act that he submitted reimbursement claims to Medicare for arthritis drugs that were not approved by the Food and Drug Administration (FDA). According to the U.S. Attorney’s Office for the Western District of North Carolina, the drugs at issue were purchased abroad and not approved for marketing or distribution in the United States, yet claims for reimbursement were nonetheless submitted to the federal program.

While the settlement resolves these civil allegations without any determination of liability, the case underscores the legal obligation healthcare providers have to ensure that Medicare claims are tied to legitimate, FDA-approved treatments. It also highlights how False Claims Act enforcement (often spurred by government investigation rather than qui tam relators in this instance) plays a key role in safeguarding the integrity of federal healthcare reimbursements.