Southwest Michigan Chiropractor charged with Medicaid Fraud

LAWTON, MI – Michigan Attorney General Bill Schuette today announced he has filed two felony counts of Medicaid Fraud—False Claim, a four-year felony, against Southwest Michigan chiropractor Ahad Lotfi, 53-years-old, of Lawton.

Lotfi, who owned and operated chiropractic clinics in Hartford, Paw Paw, Bangor, and South Haven, was allegedly billing supplies to the Medicaid program that were not eligible for Medicaid billing. These supplies included custom made shoe inserts and therapeutic pillows, which Medicaid pays $270.50 and $97.96 respectively per item. The Medicaid program allegedly paid Lotfi nearly $200,000.00 over two years as a result of billing these two item codes.

“The Michigan Medicaid program exists to pay healthcare costs for eligible Michiganders—not to function as a cash cow for unscrupulous providers,” said Schuette.

Lotfi was arraigned today before Judge Richard D. Ball of the 54B District Court in East Lansing and given a $20,000 personal recognizance bond. Lotfi is next due in court on May 19, 2017 at 8:30 a.m. for a pre-exam conference.

Schuette’s Health Care Fraud Division used new techniques involving data mining to identify a stark change in established billing patterns. It is alleged that Lotfi billed the two codes that correspond to the inserts and pillows beginning in 2015 for medical supplies.

Data mining involves actively policing Medicaid data in search of anomalies that could indicate fraud.

Schuette’s Health Care Fraud Division recently became the first such unit in the nation to secure special approval from the federal government to engage in data mining of Medicaid data.

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