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Clarksville Pain Clinic Operators to Pay $1.5 Million in Federal Settlement Over Unnecessary Testing
Two companies linked to a Clarksville pain clinic and two managers will pay $1.5 million to settle allegations they billed Medicare and the VA for medically unnecessary urine, allergy, and psychological tests. A former employee who blew the whistle will receive $285,000.
CLARKSVILLE, Tenn. â Two companies connected to a Clarksville pain clinic and two of its managers have agreed to pay $1.5 million to resolve federal allegations that they billed Medicare and the Department of Veterans Affairs for medically unnecessary testing, the U.S. Attorney's Office for the Middle District of Tennessee announced.
The settlement covers allegations involving urine drug tests, allergy tests, and psychological tests billed between April 2014 and May 2024. The companies named are Clarksville Pain Institute LLC and Pain Institute of Nashville PLC. The managers are Michael Cox and Debbie Cox.
The federal government filed its complaint in September 2024, alleging the defendants submitted or caused false claims to be submitted to Medicare and the VA. The settlement also resolves a whistleblower lawsuit filed under the False Claims Act by Krista Nicholson, a former employee.
Nicholson will receive $285,000 from the settlement, while the defendants will collectively pay $1.5 million to the United States.
Clarksville Pain Institute operated a clinic primarily in Clarksville, with additional locations in White House and Springfield. It merged with Pain Institute of Nashville in 2018, according to the government.
The case highlights the role of whistleblowers in exposing health care fraud. The False Claims Act allows private individuals to sue on behalf of the government and receive a share of any recovery. The U.S. Attorney's Office did not provide further comment beyond the settlement details.
The settlement is a reminder that federal health programs serving veterans and seniors are vulnerable to billing schemes, and that employees who witness wrongdoing can play a critical role in holding providers accountable.