Real Housewives of New Jersey’s Dr. Dov Rand sentenced to 5 months, fined $30,000

It seems Joe Giudice isn’t the only feller from The Real Housewives of New Jersey with some serious legal issues! Caroline Manzo’s physiatrist (rehabilitation physician; nerve, muscle, and bone experts who treat injuries or illnesses that affect how you move) Dr. Dov Rand was sentenced Wednesday in federal court after pleading guilty to accepting kickbacks for patient referrals to Orange Community MRI. The sentence included five months in prison, five months home confinement, two years of supervised release, and a fine of $30,000.

Dr. Rand was arrested, along with 12 other New Jersey doctors and one nurse practitioner, back in December of 2011 as part of a federal sweep on medical kickbacks. He and the others arrested were charged with taking cash from Orange Community MRI in New Jersey in exchange for the referral of Medicare and Medicaid patients.

From Justice.gov:

During the course of the investigation, Rand and others were recorded taking envelopes of cash in exchange for their patient referrals. Orange MRI’s executive director, Chirag Patel, 36, of Warren, N.J., was arrested on Dec. 8, 2011, in connection with the scheme.

Starting in 2010, Orange MRI made monthly cash kickback payments to Rand in exchange for his referral of patients to Orange MRI for diagnostic tests. At the end of each month, individuals at Orange MRI printed patient reports that detailed how many tests Rand referred and used them to calculate the kickback payment owed to Rand. Pursuant to Rand’s agreement with Orange MRI, he was paid kickbacks for each MRI test on a Medicare or Medicaid beneficiary referred to the facility.

Rand admitted receiving cash payments on more than one occasion in October and November 2011 in exchange for his referral of patients.

Of particular interest to our readers are statements attributed to Dr. Rand made in the complaint in which he says he has “an office upstairs that’s an anti-aging medicine practice … I was filmed this week on Housewives of New Jersey . . . I’m going to be on TV . . . I’m doing that, so, I’m going to get a lot more patients coming my way.”

Dr. Dov Rand was featured in the Season 4 premiere episode of The Real Housewives of New Jersey titled “High Tide, Low Blow” that first aired on April 22, 2012. In the episode he was visited by Caroline Manzo who he told was suffering from menopause. After the episode she addressed the scene with Dr. Rand and how she is dealing with the diagnosis in her Bravo blog:

MENOPAUSE — I’m not quite myself these days and the doctor believes I’m knocking on the door of menopause. If that’s the case, then open the door and let me in! Teach me what I need to know; how will I be feeling, what’s next emotionally and physically, and how do I deal with it in a positive manner. I’m not going to fight it, because whether I like it or not, I realize this is a battle I won’t win. The fact of the matter is simply this — I’m getting older and my body is going through some changes. I’ve decided to educate myself and go with the flow. If I have to go through this, I’m doing it with dignity. Wish me luck!

Here is the information on the charges against Dr. Dov Rand from the official court documents:

1. At all times relevant to this Information:

a. Defendant DOV RAND was a physician licensed in New Jersey who operated an office at [redacted] in West Orange, New Jersey.

b. Orange Community MRI, LLC (“OCM”) was located at [redacted] Orange, New Jersey. OCM provided services to patients that included magnetic resonance imaging (“MRIs”), ultrasound imaging (“Ultrasounds”), echocardiograms (“Echos”), computed axial tomographies (“CAT Scans” or “CT Scans”), and dual-emission X-ray absorptiometries (“DEXA Scans”) (collectively, the “Diagnostic Tests”) .

2. At various times relevant to this Information, there was a Cooperating Witness (the “CW”) who held himself out to be an individual acting on behalf of OCM.

3. Starting from in or about late September 2011 to in or about December 2011, the CW held himself out to be an individual acting on behalf of OCM, although he was doing so at the direction and under the supervision of law enforcement agents with the U.S. Department of Health and Human Services, Office of Inspector General.

4. The Medicare Program (“Medicare”) is a federal program that provides free or below-cost health care benefits to certain individuals, primarily the elderly, blind, and disabled. Medicare is a “Federal health care program” as defined in Title 42, United States Code, Section 1320a-7b(f). Individuals who receive benefits under Medicare are commonly referred to as “beneficiaries.”

5. The Medicare Part B program is a federally funded supplemental insurance program that provides supplementary Medicare insurance benefits for individuals aged sixty-five or older, and certain individuals who are disabled. The Medicare Part B program pays for various medical services for beneficiaries, including the Diagnostic Tests.

6. The Medicaid Program (“Medicaid”) is a jointly funded, federal-state health insurance program that provides certain health benefits to the disabled, as well as individuals and families with low incomes and resources. The federal involvement in Medicaid is largely limited to providing matching 2 funds and ensuring that states comply with minimum standards in the administration of the program. Medicaid is a “Federal health care program” as defined in Title 42, United States Code, Section 1320a-7b{f). Individuals who receive benefits under Medicaid are commonly referred to as “beneficiaries.”

7. The federal Medicaid statute sets forth the minimum requirements for state Medicaid programs to qualify for federal funding, which is called federal financial participation. 42 U.S.C. §§ 1396 et seq. In New Jersey, the New Jersey Medical Assistance Program is administered by the New Jersey Department of Human Services. Under New Jersey law, Medicaid pays for certain medical services for beneficiaries, including the Diagnostic Tests.

8. At all times relevant to this Information, OCM was a Medicare- and Medicaid-approved provider of, among other things, the Diagnostic Tests.

The Kickback Scheme

9. Starting at least in or about 2010, individuals acting on behalf of OeM made cash payments to certain New Jersey health care practitioners, including RAND, in exchange for referring patients to OCM for Diagnostic Tests.

10. After the end of each calendar month, individuals acting on behalf of OCM, including CW, printed oeM patient reports that included, among other information, dates of service, 3 patient names, the referring health care practitioners, the kinds of medical insurance to be billed, and the Diagnostic Tests performed (the “Kickback Reports”). The Kickback Reports were organized by Diagnostic Test, and therefore there was a separate Kickback Report for MRIs, Ultrasounds, Echos, CAT Scans, and DEXA scans. The Kickback Reports were then used to tally the number of OCM-patient Diagnostic Tests referred by each health care practitioner and the type of insurance used, and the results of these tallies were used to determine the amount of the kickback payment OCM paid to the health care provider.

11. Pursuant to RAND and OCM’s agreement, OCM paid RAND for each Medicare or Medicaid beneficiary MRI RAND referred to OCM. Pursuant to the same agreement, OCM also paid RAND for certain privately insured patient MRIs that RAND referred to OCM. In the event a patient referred to OCM paid for an MRI directly and not through Medicare, Medicaid, or an insurance plan (i.e., the patient “self-paid” for the MRI), then RAND did not receive any payment from OCM.

12. According to the MRI Kickback Report, during September 2011, RAND referred a total of 9 MRIs to OCM; 3 of those 9 MRIs were for Medicare or Medicaid beneficiaries.

13. On or about October 7, 2011, RAND met with CWat RAND’s office located at [redacted] in West Orange, New Jersey. During this meeting, RAND accepted from OW a white envelope containing $920 in cash, which included payments for patients RAND referred to oeM during August 2011, as well as the 3 MRls referred to oeM and performed on Medicare or Medicaid beneficiaries during September 2011.

14. During this October 7, 2011 meeting, RAND asked ew, in sum and substance, how many privately insured test referrals he made in september. The ew responded and told RAND that he had referred 6 privately insured tests and 1 Medicare or Medicaid patient, to which RAND responded, “good, good, good.” After receiving payment from ew, RAND responded “[t]hank you so much .. ” RAND then explained to ew that he has “an office upstairs that’s an anti-aging medicine practice … I was filmed this week on Housewives of New Jersey . . . I’m going to be on TV . . . I’m doing that, so, I’m going to get a lot more patients coming my way.”

15. According to the MRI Kickback Report, during October 2011, RAND referred a total of 5 MRls to OeMj at least 3 of those 5 tests were for Medicare or Medicaid beneficiaries.

16. On or about November 29, 2011, RAND met with ew at RAND’s office located at 667 Eagle Rock Avenue in West Orange, New Jersey. During this meeting, RAND accepted from ew a white envelope containing approximately $470 in cash, which included payments for the 3 MRls referred to OCM and performed on Medicare or Medicaid beneficiaries during October 2011.

17. During this November 29, 2011 meeting, RAND stated to CW “I’ve been sending some business by you.” After CW explained to RAND that for the month of October RAND was being paid for a total of 5 scans, one of which was for a Medicare/Medicaid patient, RAND stated, in sum and substance, that he sends patients that he treats for pain over to OCM for MRls, and added [m]y allegiance is to you.”

18. From at least in or about 2010 through at least in or about November 2011, in the District of New Jersey, and elsewhere, defendant DOV RAND did knowingly and willfully solicit and receive remuneration, directly and indirectly, overtly and covertly, in cash and in kind, that is, kickbacks, from Orange Community MRI in return for referring patients to Orange Community MRI for the furnishing and arranging for the furnishing of items and services for which payment may be made in whole or in part under a Federal health care program.

In violation of Title 42, United States Code, Section 1320a-7b(b) (1) (A), and Title 18, United States Code, Section 2.