Former Behavioral Health CFO Sentenced To 37 Months And $3 Million Restitution

F.J. Thomas

Philadelphia, PA (WorkersCompensation.com) – The Eastern District of Pennsylvania Department Of Justice announced that Branden Coluccio of Doylestown has been sentenced to 37 months in prison for conspiracy to commit health care fraud. He was also ordered to pay $3,070,157 in restitution, as well $110,000 in forfeited assets, and a $15,000 fine.

Coluccio was the co-founder and chief financial officer for former drug treatment company, Liberation Way. The company operated treatment centers in Yardley, Bala Cynwyd, and Fort Washington, Penn.

According to a Buck’s County Courier Times report, eleven employees were arrested last year in charges related to various insurance schemes and overbilling. Coluccio allegedly purchased high tier insurance plans for unsuspecting patients so that the facility could bill for various medically unnecessary treatments and treatments that did not occur for the purpose of reimbursement at a higher preferred rate. Additionally, Coluccio was allegedly involved in a kickback scheme involving a high number of unnecessary urine tests sent to laboratories in Florida.

In May of last year, the former Liberation Way Medical Director and Osteopathic Medicine doctor Domenick Braccia pled guilty to one count of conspiracy to commit health care fraud. Braccia was sentenced to 37 months and $2.4 million in restitution. Investigators allege that although Braccia oversaw the treatment and tests of all patients and oversaw staff at the facility, he did not provide the care that was billed. They also allege that medical care and decisions for testing were delegated to staff without a proper license. One report states that he admitted to signing blank forms and orders for tests, as well prescriptions for patients that he never saw.

According to a report from healthcare lawyers at Bass Berry and Sims, there have been $2.6 billion in recoveries in 2019 due to healthcare fraud cases, up from $2.5 billion the previous year. This makes the 10th straight year that the healthcare fraud cases have exceeded the $2 billion dollar mark. The 2019 Healthcare Fraud & Abuse Review report includes some of the most notable cases in 2019. Many of the cases highlighted involve alleged violation of Stark Law, false claims act, and kickbacks.

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