San Francisco Telehealth Company Agrees to Pay $3.3 Million to Resolve False Claims Act Allegations

San Francisco-based Circle Medical Care of California, Circle Medical Technologies, and their Chief Medical Officer Dr. Nicole Tsang have agreed to pay $3,325,000 to settle allegations that they submitted false claims to federal healthcare programs and California commercial insurers. The settlement, announced by the U.S. Attorney’s Office for the Northern District of California, resolves claims that between January 2018 and May 2025, the telehealth company knowingly billed Medicare, Medicaid, and TRICARE for services using provider identifiers for clinicians who did not actually render or supervise the care provided.

According to the government, Circle operated an online platform offering mental health and primary care through contract providers including nurse practitioners and physician assistants located throughout the country. The company allegedly identified rendering providers who were not involved in patient care and failed to properly supervise the nurse practitioners and physician assistants who actually treated patients. The settlement requires Circle to pay $475,000 to the United States and $2,850,000 to the State of California.

This case was initiated through a qui tam whistleblower lawsuit filed by Jason Vellen, a former insider who will receive $80,750 from the federal government and $997,500 from California as his share of the recovery. The resolution resulted from a coordinated effort among the U.S. Attorney’s Office, the California Department of Insurance, and the San Francisco District Attorney’s Office. This case reflects the government’s commitment to ensuring accountability in the rapidly growing telehealth sector and protecting both patient safety and taxpayer dollars.