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Federal Suit Alleges ‘Staggering’ Urine Drug Testing Fraud at Pain Clinics

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The Justice Department on Monday accused a defunct chain of Tennessee-based pain clinics of cheating Medicare and other taxpayer-funded health insurers out of at least $25 million in needless urine drug tests and genetic testing.

The civil lawsuit names Comprehensive Pain Special­ists, also known as Anesthesia Services Associates PLLC; four of its physician owners; and a former top executive. The doctors include Tennes­see Republican State Sen. Steven Dickerson and Peter Kroll, both anesthesiologists.

At its peak, CPS ran 60 pain clinics in a dozen states and treated some 48,000 patients per month, according to the suit. It shut down abruptly last summer, leaving many chron­ic pain patients scrambling to find a new source of narcotic medicines.

The Justice Department fraud case centers largely on the company’s lucrative urine-testing lab in Brentwood, Tenn., which CPS financed with a $1.5 million loan. The suit also alleges overbilling from acupuncture and other services offered to patients.

CPS was the subject of a No­vember 2017 investigation by Kaiser Health News that scru­tinized Medicare billings for urine drug tests.

Medicare and other fed­eral programs paid over $70 million from 2011 to 2018 for CPS-ordered urine tests, an amount the lawsuit called “staggering.” TennCare, the state’s Medicaid program, paid more than $9 million more dur­ing that time.

“For this reason, CPS con­sidered [urine tests] to be ‘liq­uid gold’ — with revenues of tens of millions of dollars for what was largely unnecessary medical testing,” according to the suit.

The chain’s owners and then-CEO John Davis “viewed every CPS patient as an oppor­tunity to make money, without regard to the individualized need for treatment,” the suit alleges. Davis was convicted last year in Nashville on fed­eral criminal health care fraud charges. He has since filed a motion for a new trial.

Dan Martin, an attorney representing Kroll, said in an emailed statement: “We are aware of the allegations and very familiar with the actual facts. Dr. Kroll did not engage in any wrongdoing whatsoev­er, and we look forward to cor­recting the government’s mis­understanding of the facts.”

Dickerson’s attorney, Ed Yarbrough, also issued a state­ment that read: “Dr. Dicker­son is an honest man. We will prove that in court.”

In its investigation, KHN, with assistance from research­ers at the Mayo Clinic, found that spending on urine screens and related genetic tests qua­drupled from 2011 to 2014 to an estimated $8.5 billion a year — more than the entire budget of the Environmental Protec­tion Agency. The federal gov­ernment paid medical provid­ers more to conduct urine drug tests in 2014 than it spent on the four most recommended cancer screenings combined.

CPS was among the nation’s most aggressive testers. KHN found that in 2014 five of its medical professionals stood among the nation’s top billers. Anita Bayles, a nurse practi­tioner working at a CPS clinic in Cleveland, Tenn., generated $1.1 million in urine-test bill­ings that year, according to Medicare records analyzed by KHN.

The Justice Department suit says that CPS believed Bayles ordered too many urine tests and overprescribed opioids and in September 2016 decid­ed to fire her. But the decision was reversed by CEO Davis “because of her ability to gen­erate revenues,” according to the suit. Bayles could not be reached for comment.

Though CPS ran six or more urine tests a year on many pa­tients receiving narcotics, its doctors often did not review the results to make sure pa­tients did not abuse them, ac­cording to the suit.

Kroll, who also served as CPS’ medical director, told KHN in 2017 that the high volume of tests was justified to keep patients safe and to reduce chances of black mar­ket sales of pills. Kroll billed Medicare $1.8 million for urine tests in 2015, the KHN analysis of Medicare billing records found.

Kroll said in a 2017 inter­view that he and Dickerson came up with the idea to open a high-quality pain practice over a cup of coffee at a Nash­ville Starbucks in 2005.

But the Justice Department alleges that CPS expanded rapidly through bilking the government, conduct that its top executives and founders “failed to take any action to stop,” according to the suit.

In what is called a “particu­larly egregious example of this fraudulent conduct,” the Justice Department alleged that Kroll caused over 2,500 claims to be submitted to Medicare, for which CPS was paid almost $350,000, during a 10-day period in May 2017 when Kroll was on vacation in Italy.

“Because of these fraudu­lent claims, Kroll’s billing privileges with Medicare have been revoked,” according to the suit.

The lawsuit states that Medicare officials began in­vestigating overcharging for urine testing at CPS in 2014 and eventually directed the company to repay the govern­ment $27.4 million in an ex­trapolated penalty. But CPS aggressively appealed the decision and managed to get it overturned and stay in busi­ness.

Fred Schulte, Kaiser Health News

Fred Schulte, Kaiser Health News

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Activism

Over 500 Join Interfaith Rally in Solidarity with Los Angeles Resistance to Trump Invasion

Over 500 people attended the Tuesday evening rally in Oakland, which was held simultaneously with a prayer vigil in Los Angeles, where rabbis, pastors, Muslim faith leaders, and indigenous spiritual leaders gathered to pray and speak out about the federal government’s abuses of power.

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Hundreds gathered at Fruitvale Plaza in Oakland on June 10 in solidarity with immigrants and opposed to Trump’s use of armed federal agents in Los Angeles. Photo by Beth LaBerge/KQED.
Hundreds gathered at Fruitvale Plaza in Oakland on June 10 in solidarity with immigrants and opposed to Trump’s use of armed federal agents in Los Angeles. Photo by Beth LaBerge/KQED.

By Post Staff

n response to last week’s “invasion” of Los Angeles by armed and masked federal agents, East Bay faith leaders and community members, joined by Oakland Mayor Barbara Lee and Alameda County Supervisor Nikki Fortunato Bas, held an Interfaith vigil Tuesday evening at Oakland’s Fruitvale Plaza in support of Los Angeles residents and immigrant communities across the country.

Over 500 people attended the Tuesday evening rally in Oakland, which was held simultaneously with a prayer vigil in Los Angeles, where rabbis, pastors, Muslim faith leaders, and indigenous spiritual leaders gathered to pray and speak out about the federal government’s abuses of power.

Earlier on the same day, hundreds of protesters at San Francisco and Concord immigration courts shut down the courts after masked, plainclothes federal ICE agents detained people seeking asylum attending their court hearings.

“Too many families in Los Angeles torn apart by this invasion still do not have access to a lawyer — and that’s not an accident. We, the people, the community, are here to say, ‘Enough!’ We must keep organizing and demand that ICE and our government respect the rights of all people and uphold the principle of due process,” said Andrés Pomart with Trabajadores Unidos Workers United.

“We know that when we organize, we win. That’s why our communities – Black, Brown, and working-class – are coming together to support each other in solidarity. Together, as immigrant communities and as a united working class, we will not be divided nor intimidated nor live in fear,” Pomart said.

“Immigrant communities — yes, our immigrant communities — are the heartbeat of Oakland, enriching our neighborhoods with diverse cultures, languages and experience, and deserve the quality of life that every human being deserves. An attack on one of us is an attack on all of us.  “Your city remains committed to protecting our immigrant neighbors,” said Mayor Lee.

“When Trump’s armed goons come for our families and communities, when they trample on our shared values of freedom and opportunity, when they make a mockery of our rights to due process, we are called to step up for our neighbors,” said Supervisor Bas. “This is not just an immigration story. It’s a story about who we are — and how we respond when our neighbors are under attack and when the president of the United States abuses his powers. When they come for one of us, they come for all of us.”

Said Kampala Taiz-Rancifer, the Oakland teachers’ union president, “It is time for us to say, ‘Not in our city.’ We will stop, we will block, we will drive out ICE. We will protect our classrooms. We will protect our streets. We will protect our homes. Together, we rise for the dignity of our families and our right to live without fear.”

“I feel that the president and the current administration is grossly overstepping and abusing their power,” Rabbi Chai Levy, speaking to KQED. “I feel that, as a religious person, communities of faith need to show up and stand in solidarity with immigrants who are threatened and afraid. “It’s important to show up as people of conscience and morality and say that we’re against what our government is doing.”

The vigil was hosted by Bay Resistance, and co-sponsoring organizations included the Alameda Labor Council, Alliance of Californians for Community Empowerment (ACCE), Faith in Action East Bay, Restore Oakland, East Bay Alliance for a Sustainable Economy (EBASE), Ella Baker Center for Human Rights, Oakland Rising, Faith Alliance for a Moral Economy, SEIU Local 1021, Communities United for Restorative Youth Justice (CURYJ), SEIU United Service Workers West, Jewish Voice for Peace Bay Area, Jobs with Justice San Francisco, Interfaith Movement for Human Integrity, Urban Peace Movement, and Trabajadores Unidos Workers United.

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Activism

Oak Temple Hill Hosts Interfaith Leaders from Across the Bay Area

Distinguished faith leaders Rev. Ken Chambers, executive director the Interfaith Council of Alameda County (ICAC); Michael Pappas, executive director of the San Francisco Interfaith Council; and Dr. Ejaz Naqzi, president of the Contra Costa County Interfaith Council addressed the group on key issues including homelessness, food insecurity, immigration, and meaningful opportunities to care for individuals and communities in need. 

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Troy McCombs (from the state of Washington), Elder Mark Mortensen (from Irvine, CA), Michael Pappas, Rev. Ken Chambers, Dr. Ejaz Naqvi, Elder Sigfried Nauman (from the state of Washington), and Richard Kopf. Courtesy photo.
Troy McCombs (from the state of Washington), Elder Mark Mortensen (from Irvine, CA), Michael Pappas, Rev. Ken Chambers, Dr. Ejaz Naqvi, Elder Sigfried Nauman (from the state of Washington), and Richard Kopf. Courtesy photo.

Special to the Post

Interfaith leaders from the Bay Area participated in a panel discussion at the annual meeting of communication leaders from The Church of Jesus Christ of Latter-day Saints held on Temple Hill in Oakland on May 31. Distinguished faith leaders Rev. Ken Chambers, executive director the Interfaith Council of Alameda County (ICAC); Michael Pappas, executive director of the San Francisco Interfaith Council; and Dr. Ejaz Naqzi, president of the Contra Costa County Interfaith Council addressed the group on key issues including homelessness, food insecurity, immigration, and meaningful opportunities to care for individuals and communities in need.

Chambers, said he is thankful for the leadership and support of the Church of Jesus Christ Latter-Day Saints’ global ministry, which recently worked with the interfaith congregations of ICAC to help Yasjmine Oeveraas a homeless Norwegian mother and her family find shelter and access to government services.

Oeveraas told the story of how she was assisted by ICAC to the Oakland Post. “I’m a Norwegian citizen who escaped an abusive marriage with nowhere to go. We’ve been homeless in Florida since January 2024. Recently, we came to California for my son’s passport, but my plan to drive for Uber fell through, leaving us homeless again. Through 2-1-1, I was connected to Rev. Ken Chambers, pastor of the West Side Missionary Baptist Church and president of the Interfaith Council of Alameda County, and his car park program, which changed our lives. We spent about a week-and-a-half living in our car before being blessed with a trailer. After four years of uncertainty and 18 months of homelessness, this program has given us stability and hope again.

“Now, both my son and I have the opportunity to continue our education. I’m pursuing cyber analytics, something I couldn’t do while living in the car. My son can also complete his education, which is a huge relief. This program has given us the space to focus and regain our dignity. I am working harder than ever to reach my goals and give back to others in need.”

Richard Kopf, communication director for The Church of Jesus Christ in the Bay Area stated: “As followers of Jesus Christ, we embrace interfaith cooperation and are united in our efforts to show God’s love for all of his children.”

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Alameda County

Council Approves Budget to Invest in Core City Services, Save Fire Stations, Invest in Economic Development

I am most proud of our ability to fund these critical city services without the use of one-time fixes. We are still suffering the consequences of last year’s budget, where a majority of the Council, myself not included, chose to incorporate anticipated proceeds from the sale of the Coliseum to fund essential services. Since the sale has still not yet been completed, the lack of funds led to drastic cuts in city services, including the temporary closure of fire stations, staff layoffs, and the cancellations of many service contracts.

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District 4 Oakland City Councilmember Janani Ramachandran. Photo courtesy City of Oakland.
District 4 Oakland City Councilmember Janani Ramachandran. Photo courtesy City of Oakland.

By Janani Ramachandran, District 4 Oakland City Councilmember

On Wednesday, June 11, City Council took a bold step to prioritize investing in essential city services to get our beautiful Town back on track. As Chair of the Finance Committee, I am proud to have led a collaborative process, alongside Councilmembers Rowena Brown, Zac Unger, and Charlene Wang, to develop a set of amendments to the proposed FY 2025-2027 budget which passed successfully with a vote of 6 – 1. Despite facing a $265 million structural budget deficit, we were able to restore funding to ensure that all 25 fire stations remain open, fund 5 police academies, invest millions of dollars to combat illegal dumping and sideshow prevention, improve our permitting processes, fund a “business incentives” program to revitalize our commercial corridors, improve upon our homelessness prevention work, amplify the city’s anti-trafficking programs, re-instate our tree services division, staff up our Auditor’s office – all while preventing any layoffs of city staff, keeping our senior centers and after-school programs open, and crisis services like MACRO funded.

I am most proud of our ability to fund these critical city services without the use of one-time fixes. We are still suffering the consequences of last year’s budget, where a majority of the Council, myself not included, chose to incorporate anticipated proceeds from the sale of the Coliseum to fund essential services. Since the sale has still not yet been completed, the lack of funds led to drastic cuts in city services, including the temporary closure of fire stations, staff layoffs, and the cancellations of many service contracts. The budget that we passed this week proudly does not fund recurring expenses with anticipated one-time revenue – and moves our city towards being fiscally responsible with our taxpayers’ funds.

Our budget comes in response to the widespread and consistent calls from across Oakland’s diverse communities asking us to prioritize funding solutions to the issues that have most directly impacted our residents’ safety and quality of life. Our priorities are also inspired by our belief that Oakland is on the way not only to financial recovery, but also to global recognition. Oakland can attract and preserve businesses of all sizes with safer, cleaner streets. We can and will have more large-scale festivals that celebrate our culture, concerts that uplift our incredible local musicians, conferences that attract patrons from across the world, and award-winning restaurants that top national charts. We are on our way to rebuilding a thriving economy and having a cultural renaissance will create more jobs for Oaklanders while also generating more revenue for the City through sales and business taxes.

I am grateful for the close partnership with our new Mayor Barbara Lee, and know that she shares our values of ensuring we are prioritizing keeping Oakland’s residents safe, our streets clean, and our businesses prosperous in an open and fiscally responsible manner. I am also thankful to our City Administrator, Jestin Johnson, and former Interim Mayor Kevin Jenkins’ efforts to produce the initial proposal that our Council budget team used as a starting point for our amendments, and for their shared commitment to transparency and ethical government. I am especially grateful for every resident that took the time to make their voice heard throughout this rigorous budget process. I have no doubt that we are on the verge of true change, and that together we will bring Oakland back to being the world-class city I know it can be.

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