New York Ophthalmologists to Pay $2.3 Million, Settle Allegations of Fraudulent Medicare Claims

Two ophthalmology practices in New York have agreed to pay $2.3 million to settle allegations of submitting false claims to Medicare and Medicaid, according to the Department of Justice (DOJ).

The practices—Fromer Eye Centers and Floral Park Ophthalmology P.C.—allegedly submitted Medicare claims for medically unnecessary transcranial Doppler ultrasounds (TCDs), the DOJ said in a July 31 statement.

Fromer Eye is also accused of submitting false Medicaid claims. TCD is a noninvasive test that uses sound waves to identify conditions affecting blood flow in the brain. The fraud scheme was carried out through a kickback arrangement with a third-party testing company.

The DOJ alleges that the ophthalmology practices performed TCDs on thousands of patients, billing Medicare and Medicaid hundreds of dollars per test.

Before the patients were provided with test results, the practices and the testing company allegedly identified them as having serious diagnoses that could qualify them to receive reimbursement for TCD tests.

However, almost all patients who received TCDs never actually had such a diagnosis, and the diagnosis was neither reflected in their medical history nor in their TCD results, the DOJ said.

Floral Park Ophthalmology is also alleged to have received payments from the testing company, according to the department.

In addition to alleging that the TCDs were medically unnecessary, the DOJ claims these tests were premised on false diagnoses. The practices’ actions amount to a violation of the Anti-Kickback Statute, the DOJ said.

The department had previously resolved similar allegations against multiple ophthalmologist practices. In January, the DOJ said five such practices in Florida agreed to pay almost $6 million to settle accusations of submitting false claims to Medicaid and Medicare for TCD tests that were not required.

In May 2025, the DOJ announced that another Florida ophthalmology practice committed to pay $615,000 to resolve similar claims.

In its latest statement, the DOJ said that under the settlement agreement, Fromer Eye Centers and the Estate of Mark Fromer will pay $1.8 million, while Floral Park Ophthalmology will pay $500,000.

“Kickback arrangements work to corrupt impartial medical decision-making and drive up health care costs for everyone,” special agent in charge Isaac M. Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG) said in the statement.

“HHS-OIG will continue to work closely with our law enforcement partners to investigate and hold accountable those who attempt to defraud federal health care programs.”

The Epoch Times reached out to Floral Park Ophthalmology for comment but did not receive a response by publication time. Fromer Eye Centers shut down last year.

The DOJ highlighted that the Trump administration launched the Task Force to Eliminate Fraud this year to strengthen the war against waste, abuse, and fraud in federal programs.

Trump ordered the task force to “coordinate and accelerate a comprehensive national strategy to stop fraud, waste, and abuse within Federal benefit programs.” Officials estimate that fraudsters steal around $300 billion from government programs annually.

Among the defendants were 90 doctors and other licensed medical professionals accused of being part of opioid abuse schemes. In Nevada, a nurse practitioner allegedly defrauded Medicaid of almost $1 billion in skin substitute allografts.

Oz said the CMS was no longer on the defensive regarding healthcare.

“CMS is done playing catch-up. We’re deploying advanced data analytics to expose fraud networks, freeze suspicious payments, and shut down bad actors before they can do damage to the programs that millions of Americans depend on,” Oz said.